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Showing results for tags 'forefeiture'.
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Suppose a plan allows for an unreduced early retirement benefit as early as age 55. Normal Retirement Date is age 65. The plan was frozen a couple of year's ago. A participant is currently working and is now eligible to receive an unreduced pension benefit, but the plan does not allow for in-service distributions. Assume that 415 limits don't apply to this person. If this participant waits until a later date (perhaps age 65) to commence their benefit then there has clearly been some benefit "left on the table", but has an impermissible forfeiture of benefits occurred? What if the plan offered in-service distributions? Does it make a difference if the participant is a former participant who consequently is not currently receiving a paycheck from the plan sponsor?