Lump Sum Distributions And 401(a)(9)

[Guest Donaldson]

Facts - a profit sharing and 401(k) plan provides that distributions from the plan may only be taken in the form of lump sum distributions. The plan does not permit other forms of distributions (e.g., installments).

Question - how much, if anything, is the plan required to say about the application of the required minimum distribution rules under IRC Section 401(a)(9)? Regulation § 1.401(a)(9)-1 Q&A 3 specifies which provisions must be included in a plan to satisfy Section 401(a)(9), but I am not sure if these provisions are required by plans that only permit lump sum distributions.

If provisions regarding 401(a)(9) are required, does anyone have any suggested language?

Thank you.