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Posted

Distribution date is the August 1st of the plan year following a participant's separation from service. Can the plan sponsor payout earlier than the distribution date as long as they do this on a consistent basis?

Posted

If you pay out at a different time, do you know how much to pay?

Would it violate the terms of the plan?

Would the participant receive a distribution prior to separation of employment?

Is there potential discrimination in favor of HCEs?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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