mming Posted September 2, 2021 Share Posted September 2, 2021 Regarding the requirements that elective deferrals and safe harbor contributions cannot be distributed to employed participants until they attain age 59.5 (assuming the doc permits such payouts), I was recently speaking with someone who mentioned that recent legislation (he said either the SECURE or CARES Act) now permits inservice distributions from all sources including deferrals and SH money. I normally defer to him since he's a TPA, but I haven't been able to locate anything in writing that backs up this change - have the inservice rules changed in this respect? Link to comment Share on other sites More sharing options...
Lou S. Posted September 2, 2021 Share Posted September 2, 2021 Try the Bipartisan Budget Act of 2018 (Act). It optionally allows but does not require the expansion discussed. Link to comment Share on other sites More sharing options...
mming Posted September 2, 2021 Author Share Posted September 2, 2021 Thanks Lou, but perhaps I should've been more specific - I was referring to normal inservice distributions and the BBA seems to have lessened restrictions only on hardship withdrawals. Link to comment Share on other sites More sharing options...
Lou S. Posted September 2, 2021 Share Posted September 2, 2021 CARES allowed it up to $100,000 but only through 12/31/2020 for Coronavirus Related Withdrawals which could be self certified and only for plans that added the CARES withdrawal provisions. I'm not aware of a general expansion for under age 59.5 other than the hardship exception. If it has been expanded, hopefully someone can point out where. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted September 2, 2021 Share Posted September 2, 2021 SECURE added qualified birth and adoption distributions, but those are limited to $5000. That notwithstanding, IRC 401(k)(2)(B) remains intact. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
BG5150 Posted September 3, 2021 Share Posted September 3, 2021 19 hours ago, Lou S. said: CARES allowed it up to $100,000 but only through 12/31/2021 for Coronavirus Related Withdrawals 2021? or 2020? Lou S. 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Lou S. Posted September 7, 2021 Share Posted September 7, 2021 On 9/3/2021 at 10:44 AM, BG5150 said: 2021? or 2020? Yep brain cramp - 2020 - I'll edit my prior post. Link to comment Share on other sites More sharing options...
BG5150 Posted September 7, 2021 Share Posted September 7, 2021 52 minutes ago, Lou S. said: Yep brain cramp - 2020 - I'll edit my prior post. Just making sure I wasn't cramping QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
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