participant wants to rollover account to ira

[Lori H]

plan's NRA is 65, does not allow for in service distributions and has no early retirement provision. owner, age 62, wants to rollover a portion of his account to an ira and remain a participant in the plan. should the plan doc be amended to incorporate an early retirement age of 60 or add an in service distribution option? wouldn't the latter open up the possibility of more participants removing funds rather than those who have just reached age 60?

[david rigby]

You could amend the plan to change NRA to age 62, and permit in-service distributions only to those beyond NRA. Yes, this provision must apply to all participants. A variation might be to amend the NRA to be the earlier of age 65, or age 62 with 25 years of service.

[Guest Pensions in Paradise]

The question in my mind is why does the owner want to roll his money to an IRA? Is he not happy with the investment options in the plan? If that's the case, then he may have some fiduciary concerns.

[Lori H]

the owner just wants to receive an income stream from his ira to purchase a piece of land. he is content with the investments. so he would need to incorporate both an early retirement provision(age 62) AND an in service distribution? he could just not amend for early retirement, keep working and rollover a portion of his account?

[R. Butler]

Why does he have to amend NRA provisions or add early retirement provisions? Couldn't he just amend to add in-service distributions at age 59 1/2?