Rev. Rul. 58-230 says a participant can get in-service withdrawal if he incurs a 6 month suspension from participation. Still in effect?

[Guest Giovanni]

There's an old Revenue Ruling (Rev. Rul. 58-230) which says that a participant incurs a 6 months' suspension from participation under the plan if that participant makes an in-service withdrawal. Does anyone know if this Revenue Ruling is still in effect?

Would it depend on the plan document and could a plan be written with a longer suspension period, such as 2 years?

And if such a suspension is allowed, is the employee still required to get a top heavy minimum and as such the cross-tested gateway?

[Harwood]

That Rev Ruling reads like a Private Letter Ruling. The specific plan in question had a 6-month provision and the IRS said it was ok.

For hardship withdrawals in 401(k) plans, a plan can have suspend employee deferrals for periods of longer than 6 months [except for Safe Harbor plans].

[david rigby]

RR 58-230 has been obsoleted by RR 91-8.

http://www.taxlinks.com/rulings/1991/revrul91-8.htm