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How is the maximum Defined Benefit calculated for older NRA's like ages NRA 70 or NRA 85?


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The 415(b) dollar limit is adjusted for benefit commencement dates later than age 65 using the 417(e) applicable mortality table and 5% interest.

Note that the 100% of compensation limit is not adjusted. So by 85 (much earlier than that, in fact) the compensation limit will be lower than the adjusted dollar limit and will control.

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

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