Guest Do Posted April 11, 2003 Posted April 11, 2003 Can a DB plan (traditional or cash balance) provide for in-service hardship withdrawals?
David MacLennan Posted April 11, 2003 Posted April 11, 2003 Generally no. The IRS postion is that pension plans cannot have in-service distributions, unless normal (or early?) retirement age is attained. However, if you're talking about a rollover account or voluntary contributions, the answer is probably yes, as long as the plan document allows for it.
Guest Do Posted April 11, 2003 Posted April 11, 2003 Thank you David. Do you (or anyone else) have the authority for that?
Kirk Maldonado Posted April 11, 2003 Posted April 11, 2003 Check these out (to see if they are right): Rev. Rul. 56-693, 1956-2 CB 282, as modified by Rev. Rul. 60-323. 1960-2 CB 148. Kirk Maldonado
david rigby Posted April 12, 2003 Posted April 12, 2003 Find a Revenue Ruling: http://www.taxlinks.com/ I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
mbozek Posted April 12, 2003 Posted April 12, 2003 Under IRS reg. 1.401-1(b)(1) a retirement plan provides benefits upon termination or attainment of retirement age. Inservice distributions prior to attaining normal retirement age are not permitted. See TIR-1403 (Announcment 75-110), Q M-15. mjb
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