MGC1213

A sole-proprietor write various checks from the profit sharing plan to various companies throughout the year for personal expenses. The sole-proprietor indicates it is an in-service distribution. Form 1099-R was filed and distribution was included in income on the Form 1040. Is this correct? Or would it be a prohibited transaction since the sole-proprietor is a disqualified person? Would this be considered an in-direct loan to the disqualified person? Thank you.