InServiceDistribution Verusu Pre-Retirement Distribution

[Guest DIGMYDOG]

What is the difference between an in service distribution and a pre-retirement distribution?

[pmacduff]

I give up....what's the difference? (just kidding)! I think that pre-retirement is the "older" term from the days when Pension Plans mostly paid out at retirement age and there were few, if any distributions made prior to retirement. Also - I think that you see "pre-retirement" used more in the Defined Benefit and Pension arena, whereas "in-service" is the common terminology for 401(k) plans with hardships, loans & the like. So - I believe that they are the same - just my humble opinion though, don't know if others will agree......

[WDIK]

A qualified preretirement survivor annuity is paid to the beneficiary of a participant who dies before the "annuity starting date". In other words, pre-retirement. In this case, it differs from an in-service distributions because it is due to the participant's death.

[Tom Poje]

I would hold that

in-service = took distribution while still working, hence, still in service. so they come from profit sharing plans since those are the only plans that allow them.

pre-retirement = took before hitting retirement (generally age 65). ee has terminated, is no longer 'in-service' of the employer.

any distribution will do, best example that comes to mind is the QPSA.

That is not Qualified Poje Stupid Answer (though many of my answers may be), but rather Qualifed PRERETIREMENT Survivor Annuity.