kbird

Thank you, Artie. This plan sponsor did not choose to reduce the age for in-service distributions; however, I'm mostly curious about the in-plan annuity component of the statement and their current provisions. Any insight regarding the ability of an active individual under age 70.5 (in this plan) having the option to choose either a full or partial annuitization of their balance?

An attorney & participant in a governmental 457(b) plan sent a vague email inquiry of statements related to distribution rules. The one that has me stumped is, "The SECURE Act of 2019 permitted in-service distributions from governmental 457(b) plans if the plan fails to offer a specific in-plan annuity option." My experience is mostly in the ERISA space, but I cannot find anything specific surrounding this statement in the original SECURE Act or other legislation. Ultimately, I believe he's fishing to take an in-service distribution. The NRA is 65 and in-service distribution age is 70.5. (This individual is 58 and married.) The Adoption Agreement allows for life and joint life annuitization, so I believe it nullifies an in-service distribution "mandate," if you will, from any legislation. That said, the document language does not state if the annuitization option is available pre-70.5 for active employees. If allowed, it also does not specify if he chooses to annuitize, could he: Do a partial annuitization? (As he has a sizeable balance, over $500k.) Continue to make elective deferrals? If anyone has any insight or experience with similar scenarios, I'd love to hear some thoughts.