diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index 879be1c6fbf..61b1911261d 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -5058,9 +5058,10 @@ namespace ts {
             if (!links.resolvedSignature) {
                 const parameters: Symbol[] = [];
                 let hasLiteralTypes = false;
-                let minArgumentCount = -1;
+                let minArgumentCount = 0;
                 let thisParameter: Symbol = undefined;
                 let hasThisParameter: boolean;
+                const iife = getImmediatelyInvokedFunctionExpression(declaration);
                 const isJSConstructSignature = isJSDocConstructSignature(declaration);
 
                 // If this is a JSDoc construct signature, then skip the first parameter in the
@@ -5087,14 +5088,12 @@ namespace ts {
                         hasLiteralTypes = true;
                     }
 
-                    if (param.initializer || param.questionToken || param.dotDotDotToken || isJSDocOptionalParameter(param)) {
-                        if (minArgumentCount < 0) {
-                            minArgumentCount = i - (hasThisParameter ? 1 : 0);
-                        }
-                    }
-                    else {
-                        // If we see any required parameters, it means the prior ones were not in fact optional.
-                        minArgumentCount = -1;
+                    // Record a new minimum argument count if this is not an optional parameter
+                    const isOptionalParameter = param.initializer || param.questionToken || param.dotDotDotToken ||
+                        iife && parameters.length > iife.arguments.length && !param.type ||
+                        isJSDocOptionalParameter(param);
+                    if (!isOptionalParameter) {
+                        minArgumentCount = parameters.length;
                     }
                 }
 
@@ -5109,13 +5108,6 @@ namespace ts {
                     }
                 }
 
-                if (minArgumentCount < 0) {
-                    minArgumentCount = declaration.parameters.length - (hasThisParameter ? 1 : 0);
-                }
-                if (isJSConstructSignature) {
-                    minArgumentCount--;
-                }
-
                 const classType = declaration.kind === SyntaxKind.Constructor ?
                     getDeclaredTypeOfClassOrInterface(getMergedSymbol((<ClassDeclaration>declaration.parent).symbol))
                     : undefined;
@@ -10933,23 +10925,23 @@ namespace ts {
             const func = parameter.parent;
             if (isContextSensitiveFunctionOrObjectLiteralMethod(func)) {
                 const iife = getImmediatelyInvokedFunctionExpression(func);
-                if (iife) {
+                if (iife && iife.arguments) {
                     const indexOfParameter = indexOf(func.parameters, parameter);
-                    if (iife.arguments && indexOfParameter < iife.arguments.length) {
-                        if (parameter.dotDotDotToken) {
-                            const restTypes: Type[] = [];
-                            for (let i = indexOfParameter; i < iife.arguments.length; i++) {
-                                restTypes.push(getWidenedLiteralType(checkExpression(iife.arguments[i])));
-                            }
-                            return createArrayType(getUnionType(restTypes));
+                    if (parameter.dotDotDotToken) {
+                        const restTypes: Type[] = [];
+                        for (let i = indexOfParameter; i < iife.arguments.length; i++) {
+                            restTypes.push(getWidenedLiteralType(checkExpression(iife.arguments[i])));
                         }
-                        const links = getNodeLinks(iife);
-                        const cached = links.resolvedSignature;
-                        links.resolvedSignature = anySignature;
-                        const type = getWidenedLiteralType(checkExpression(iife.arguments[indexOfParameter]));
-                        links.resolvedSignature = cached;
-                        return type;
+                        return restTypes.length ? createArrayType(getUnionType(restTypes)) : undefined;
                     }
+                    const links = getNodeLinks(iife);
+                    const cached = links.resolvedSignature;
+                    links.resolvedSignature = anySignature;
+                    const type = indexOfParameter < iife.arguments.length ?
+                        getWidenedLiteralType(checkExpression(iife.arguments[indexOfParameter])) :
+                        parameter.initializer ? undefined : undefinedWideningType;
+                    links.resolvedSignature = cached;
+                    return type;
                 }
                 const contextualSignature = getContextualSignature(func);
                 if (contextualSignature) {