ajc0202 Posted January 27, 2023 Share Posted January 27, 2023 Hello, We have a participant in a fully insured plan that is past NRA and would like to take a partial distribution. They have 4 annuity contracts in the plan and want to distribute 2 of them to an outside account and continue to pay premiums on the other 2. I realize we have to amend the formula to make this work, and there are only owners in the plan, so that part should be ok. I'm wondering if this partial distribution would be allowed? I had been told in the past that in-service distributions aren't allowed from fully insured plans. But, this participant is past NRA, so this could be considered a partial distribution of the retirement benefit. Thoughts? Thanks, Austin Link to comment Share on other sites More sharing options...
ErnieG Posted January 30, 2023 Share Posted January 30, 2023 Austin: Loans are not permitted in Fully Insured Plans under IRC 412(e)(3), distributions are allowed subject to the terms and conditions of the Plan. Link to comment Share on other sites More sharing options...
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