s2mone

Current plan document allows for in-service distribution for participants who are over 59.5 and employed for 5 years. The withdrawal is restricted to once a year. The client wants to amend the plan to allow multiple (periodic) payments of in-service distribution for participants who are over 70.5 and leave the restriction for once a year for participant who is 59.5. is this allowed?

The S corp owner has received a W-2 compensation payment, additionally he has received 1099 misc. from the same corporation. Compensation in the plan document is defined as W-2 wages or earned income for self-employed individuals. Can we use the 1099 misc. line 3 “other income” as income in addition to the W-2 wages?