Just curious, if you wish to share it, why did you pick 3 and not a longer period?

It is an unqualified plan. Even though the plan assets are in your name, it is very clear that the plan assets are not vested. I have worked for a company that went bankruptcy. Losing everything contributed to the plan is quite possible. My company offers access to the 409A plan as a retention incentive for engineering level, but the vast majority of people covered by these plans are high level management. The terms of the plan are inflexible and are targeted for the majority of the participants which are executives.

I am not comfortable with having a large amount funds in the plan or for an extended amount of time. We have only recently become eligible for the plan and are nearing retirement. Where I see it fitting in our plan is a transition buffer between leaving work and when we starting to receive Social Security and a (small) pension.