457(b) Special 3-Year Catch Up

[EBECatty]

Is anyone aware whether, for purposes of the special catch-up contributions, a non-governmental 457(b) plan can define "normal retirement age" at less than age 65 where the sponsor has only a 401(k) plan (with a normal retirement age below 65), and not a DB plan or money purchase plan?

[Belgarath]

No can do. In the situation you describe, can't be earlier than age 65. See 1.457-4(c)(3)(v).

[EBECatty]

That was my reaction after the reading the NRA definition you cite, but it struck me as odd that the regs wouldn't allow for an NRA tied to a defined contribution plan. Here, the 401(k) plan's NRA is 62, but the 457(b) plan NRA now has to be 65. Just seems inconsistent. I couldn't find any guidance issued on the point either. 

Maybe the IRS views the DB plan NRA as a more "real" retirement date?

[Peter Gulia]

I express no view about the Treasury department's interpretation of IRC 457(b)(3).

But if the rule allowed reference not only to a defined-benefit or money-purchase pension plan but also to a profit-sharing plan, imagine how the rule would apply if the referred-to plan's normal retirement age is 18.