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Partial distribution from Fully Insured plan


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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

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