Distribution -- Installment Payments

[Archimage]

If a participant initially takes their distribution in installment payments over their life expectancy and a couple of years down the road decides to cease all distributions (assuming the plan doc allows for this), are there any tax consequences for this decision?

[FundeK]

How old is the participant?

[Archimage]

Let's say the participant is 66, 4 months, and 2 days.

[Kirk Maldonado]

Was the participant under age 59-1/2 when the distributions commenced?

[Archimage]

No.

[FundeK]

If the participant was over 59 1/2 when the installments began, I don't know of any tax consequences that would apply if he/she stopped payments. You already stated it was allowed per the terms of the plan, so I can't see any reason why it couldn't be allowed.