14A. Money purchase (including target benefit) plan–- definition of normal retirement age

Statement of Requirement: IRC § 411(a)(8); Reg. §§ 1.401(a)-1(b)(2),

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1.411(a)-7(b)(1), 1.411(d)-4, Q&A-12; Notice 2007-69; Rev. Proc. 2017-4, sec. 7.03(5)R ev. Proc. 2023-37, 2023-51 I.R.B. 1491, sec. 9.02(13)

Sample Plan Language:

Normal retirement age is the age selected in the adoption agreement. If the employer enforces a mandatory retirement age, the normal retirement age is the lesser of that mandatory age or the age specified in the adoption agreement.

Sample Adoption Agreement Language:

For each participant, normal retirement age is: (select A. or B.)

A.

( ) age _____ (not less than 55, nor in excess of 65).

(No age less than 55 can be inserted. If an age between 55 and l ess than 62 is inserted, no reliance will be afforded on the Opinion Letter issued to the plan that such age is reasonably representative of the typical retirement age for the industry in which the participants work.)

B.

( ) the later of:

(i) age _____ (not less than 55, nor in excess 65), or

(ii) the _____ (not to exceed 5 ^th ) anniversary of the participation commencement date. If, for plan years beginning before January 1, 1988, normal retirement age was determined with reference to the anniversary of the participation commencement date (more than 5 but not to exceed 10 years), the anniversary date for participants who first commenced participation under the plan before the first plan year beginning on or after January 1, 1988, shall be the earlier of (A) the tenth anniversary of the date the participant commenced participation in the plan (or such anniversary as had been elected by the employer, if less than 10) or (B) the fifth anniversary of the first day of the first plan year beginning on or after January 1, 1988. The participation commencement date is the first day of the first plan year in which the participant commenced participation in the plan.

(Note to reviewer: Under the provisions of Reg. § 1.401(a)-1(b)(2), a plan’s normal retirement age (NRA) cannot be earlier than what is reasonably representative of the typical retirement age for the industry in which the participants work. An NRA of 62 or older is deemed to satisfy this requirement. An NRA under 55 is presumed

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not to satisfy this requirement unless the Service determines that the facts and circumstances show otherwise. W hether an NRA between 55 andl ess than 62 but not less than 55 satisfies this requirement depends on facts and circumstances.)