In-service Distribution

[K-t-F]

Client wants to take an in-service distribution. Doc says as long as the participant has 60 months of participation it is allowable.

What are the taxes? 20% withholding (Minimum), 10% excise (EE is 57)... am I missing anything?

Tks!

[Blinky the 3-eyed Fish]

You don't provide enough information to answer either question.

Keep in mind that the 20% withholding rule applies to eligible rollover distributions. You don't say how the in-service distribution will be taken though. If it's a hardship, then that is not eligible for rollover, but if it's a standard in-service distribution, then that would be.

The 10% penalty is waived for certain scenarios too lenghty to list. While, it's probable that it would apply, you need to know the rules to make the determination.

I recommend a good resource book like the ERISA Outline Book by Sal Tripodi. When you are the only one at your shop having to make these basic everyday determinations, this book is invaluable.

[K-t-F]

I intend to get the book....

Not a hardship. Simply a participant in a PS plan that wants to take an in-service distribution.

In this case the 10% will apply I am sure.

Found my answer... Thanks!