In-Service Distribution of Merged MPP Money

[DP]

A client has a new PS 401k plan that holds merged MPP money. The PS plan allows In-Service Distributions from all accounts after age 62 and 5 years of service.

Would this apply to merged MPP money also? Thanks.

[DP]

Here's a follow up to my above question. The plan has a Normal Retirement Age of 65 and 5 years of service. The participant wanting the distribution is age 66 and still employed. She's been a participant for about 30 years.

Since she has reached NRA, could she take a in-service distribution of her MPP balance?

[Blinky the 3-eyed Fish]

The merging of MP dollars requires the surviving plan to keep the distribution restrictions in place on those dollars. Thus, the restriction of taking a distribution before the NRA in the MP plan stays.

Now in your case, because she is past NRA, if the document allows, then she sure can take a distribution.

[DP]

Blinky, that's exactly what I wanted to hear!