Can a governmental money purchase plan allow in-service distributions

[Guest wjr]

Can a Governmental Money Purchase Plan allow for in-service distributions of vested employer accounts. If they can, are they subject to the general profit sharing type rules that the money must have been in the plan for 2 years or 5 years of participation?

[Carol V. Calhoun]

No. A pension plan (including a money purchase pension plan) is not permitted to make distributions of any benefits attributable to employer contributions until the earlier of (a) attainment of normal retirement age, or (B) separation from service.