Distribution Timing Restrictions

I have a plan that restricts the timing of a distribution until after the close of the plan year following a 1 year break in service if termination is for reasons other than death, disability, or retirement. If termination is due to death, disability, or retirement, then the distribution can be paid as soon as administratively feasible.

The Normal Retirement age of the plan is age 62. A participant terms at the age of 61(not retirement age set by the plan). They wait and submit a distribution request upon turning age 62, but haven't yet incurred the 1 year break in service. Per the plan provisions, do they have to wait for that break in service and then be paid following the close of the plan year, or does the timing allow for them to be paid as they now reached Normal Retirement age of the plan. The employer notated "retirement" as the distribution reason, but at separation from employment, he wasn't the NRA of the plan. Thoughts on the timing of this distribution?

It is likely there is another document section that you are ignoring that provides that he can get paid out at NRA. That would override having to wait for a 1 year BIS.

This is a plan document question.  Read very carefully the provision  that talks about payments due to retirement.  It most likely says something to the effect if the person terminates due to retirement they get paid one way.  There is then a provision that says if a person terminates for a reason other then death, disability, or retirement they are paid another way. 

If it says what I suspect it says then the question is simple, "did this person terminate due to retirement?".  If so, then that provisions applied.  If not, then that provision doesn't apply and the regular termination provisions apply. 

Unless you have one of those rare documents that says to account for what happens after the person terminates then all that matters is what was the person's status at the time of termination.

But once again THE DOCUMENT will answer this question CLEARLY.   Just read it carefully and think about what it is saying. 

and don't forget code section 401(a)(14):

(14) A trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part provides that, unless the participant otherwise elects, the payment of benefits under the plan to the participant will begin not later than the 60th day after the latest of the close of the plan year in which—

I agree that this is a plan document question. Generally, termination due to death, disability, or retirement means termination when eligible for death benefit, disability benefit, or retirement benefit. 

2 hours ago, card said:

and don't forget code section 401(a)(14):

(14) A trust shall not constitute a qualified trust under this section unless the plan of which such trust is a part provides that, unless the participant otherwise elects, the payment of benefits under the plan to the participant will begin not later than the 60th day after the latest of the close of the plan year in which—

(A) the date on which the participant attains the earlier of age 65 or the normal retirement age specified under the plan,

(B) occurs the 10th anniversary of the year in which the participant commenced participation in the plan, or

(C) the participant terminates his service with the employer.

Card has a good point.  At risk of getting too much on my soapbox but that part of the law is always in the plan document also.  So once again if you read all of the plan provisions about distributions you will hit these rules also. 

As I said earlier (but now a little stronger) there almost certainly is language that says he can get paid out at NRA. That section will override the termination/BIS rules that apply before NRA.