merger of money purchase plan into 401(k) - can in-service distributio

[EGB]

We are merging a money purchase plan into a 401(k) plan. The 401(k) allows in-service distributions at age 59 1/2. We want to allow this for a participant's entire account balance after the merger (which will include the assets transferred from the money purchase plan). Generally, in-service distributions are not allowed in a pension plan (though there is authority for allowing an in-service distribution at NRA or age 65 in a pension plan). It seems to me that this restriction is technically tied to the type of plan and not to the source of the money, such that we should be able to allow in-service distributions in the 401(k)plan, even if it contains old money purchase money. See 1.401-1(B)(1)(i). Any thoughts would be appreciated.

[KJohnson]

I think the identity of the money still matters and you could not have pre-NRA in-service distribuitons from the money purchase amounts as such. However, couldn't you simply lower normal retirement age under the meged document to age 59 1/2?

[wmyer]

I agree with KJohnson that you could amend the NRA. Of course, then at age 59 1/2, everyone would become 100% vested, regardless of years of vesting service.