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DC plan - post termination amendment to allow partial distributions


Belgarath
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Any reason DC plan that didn't allow partial distributions at termination date (12/31/2017) can't be amended to allow them now? Final distributions won't be available for quite some time, and they want participants to be able to receive some money currently.

I think it is fine, but I seem to recall some post-termination amendment issues with DB plans particularly.

Thanks.

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4 hours ago, Belgarath said:

 Final distributions won't be available for quite some time, and they want participants to be able to receive some money currently.

 

Could someone take a 99.9% partial withdrawal?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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There is nothing that prevents a partial distribution of the termination payout with the balance to be paid later.  It is not an in-service withdrawal, it's a termination distribution.

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

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On 1/12/2018 at 1:04 PM, BG5150 said:

Could someone take a 99.9% partial withdrawal?

In most plans that do this the trustee determines the percentage of the payout.  This allows the people to get some of their money while the plan gets the D Letter and other final actions happen.  It keeps the people happy while the plan can do what it needs to do to make sure all is good. 

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