EGTRRA Lookback Rules For Multiple Distributions

[Guest merlin]

A Key Employee took an in-service distribution from a calendar year top heavy plan in 2000. He terminated employment in 2002. How are the two distributions now treated under EGTRRA's lookback rules? Does each have its own clock,1 year for the termination and 4 years for the in-service?Or does the fact that he doesn't have any service in 2003 remove both from the balances at 12/31/03?

[jaemmons]

A former employee's benefits are not taken into account for the year in which they do not work at least one hour of service. This would include their current account balance, as well as any in-service distributions made during the 5 year look back period. EGTRRA Section 613 ©(2) amended IRC section 416(g)(4)(E).