jpod Posted December 18, 2008 Share Posted December 18, 2008 The regulations permit discretionary cash-outs of a participant's interest if the account balance is not in excess of the 402(g) basic amount (i.e., $16,500 in 2009). You must aggregate all plans of the same type under the "plan aggregation" rules in applying this rule. Does it go without saying that you can "disaggregate" two "plans" of different types? Suppose you have one document that provides for both elective contributions and employer-funded non-elective contributions, and separate accounts are maintained for the two types and earnings and losses are separately tracked. If each account is less than the 402(g) limit, but the two combined are greater than the 402(g) limit, can you cash-out both under the discretionary cash-out rule? Link to comment Share on other sites More sharing options...
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