In-Service Withdrawal in Self-Employed Pension Plan

[Guest SueJ]

I have a participant in a Self-Employed Pension Plan that wants to take an in-service withdrawal. The Plan Document does not address in-service withdrawals. The participant says it has been done in the past and the distribution is not subject to the mandatory 20% withholding. Based on IRS Publication 560, I believe we can make the distribution, but must withhold the 20%.

Is this correct?

[Guest b2kates]

1. Confirm or amend the plan to permit in service distributions

2. See IRC 3405© regarding the mandatory 20% withholding.