| It is fascinating to note that the IRS speaks of | | | | Social Security Amendments changed the full IRS |
| their IRS normal retirement age so often that it's | | | | normal retirement age for people born in 1938 or |
| been relegated its own acronym or three initials | | | | thereafter. |
| -NRA- within their own publications. It usually | | | | For example if the age of birth is 1938 then |
| refers to an age that has been set forth within a | | | | retirement is 65 plus two months. Another |
| retirement plan. It deals with employees receiving | | | | example is if the age of birth is 1943 to 1954, |
| full benefits when they retire. Should a person | | | | when baby boomers came forth, then the age is |
| retire prior to it then it may occasion a reduction | | | | 66. Each year then goes up incrementally by two |
| in that person's benefits. | | | | months, thus for someone born in 1956 is 66 plus |
| Most people agree that 65 is a general retirement | | | | 4 months. |
| age, however when IRS mentions its definition, | | | | Thus the normal retirement age is actually the |
| they are either referring to retirement plans and | | | | specific age when a person can retire and still |
| when those retirement plans become vested for | | | | take delivery of their full benefits. In this case, |
| the employees of a certain company or industry, | | | | there are no early retirement penalties. The |
| or Social Security retirement. Most plans, of | | | | government has made very special provisions |
| course, specify that age 65 is considered to be | | | | though for employees who are working on a job |
| retirement age, though the IRS normal retirement | | | | with very highly mentally or physically demanding |
| age is different. | | | | jobs. |
| Thus the IRS has put forth this definition that the | | | | Those who retire prior to the approved age then |
| accepted IRS normal retirement age is "the earlier | | | | get smaller benefits than the person who retired |
| of the NRA under the plan or the later of age 65 | | | | at the normal age as set forth by the IRS. The |
| or the 5th anniversary of commencement of plan | | | | reverse is also governed in that those who |
| participation." | | | | postpone their retirement beyond age 65 will then |
| When the IRS is speaking about Social Security | | | | receive increased benefits. Granted, the earliest |
| retirement benefits then there is a working ladder | | | | age at which someone may take the smaller |
| to define that particular definitions of the age of | | | | reduced benefits has been and still is at age 62. |
| retirement includes wording such as "Full | | | | Keep in mind that those Social Security guidelines |
| Retirement Age" and that that age will vary from | | | | cannot be used as a vesting guideline for a 401(k) |
| age 65 to the age of 67 depending on the year | | | | for example. They are strictly to be used to |
| of birth. The definitions arrive from the Office of | | | | assign Social Security benefits and when those |
| the Chief Actuary, and deals specifically when an | | | | benefits fit into their particular definition of the |
| employee can receive full benefits. The 1983 | | | | IRS Normal Retirement Age. |