Distributions after retirement age, but before actual retirement

[Guest Tara Curran]

Can a participant who has reached normal retirement age under a profit sharing plan take a distribution of his account if he is still employed by the same employer? The participant is actually the sole proprietor of this company. Or does the plan document have to address whether a participant can take the distribution?

[jaemmons]

The plan document should indicate whether or not they can take their account balance post NRA, while they are still employed. Keep in mind that the document does not have to allow for it because distributions from a qualified retirement plan MUST commence no later than 60 days after end of the plan year which contains the later of the following: attainment of NRA or earilier of 65, the participant's 10th anniversary of plan participation, or termination of service.

All in all, look to the plan document, and worst case you may be able to amend it to allow for this if it doesn't.