Jump to content

In-Service Distribution of Pick-Up Contributions?


Recommended Posts

My understanding is that pick-up contributions are subject to the same limitations on in-service distributions as vanilla employer contributions (i.e., retirement, disability, termination of the plan, etc.), under the general rule that pick-up contributions are treated as employer contributions for plan-qualificaton purposes. Employer, however, is not quite ready to give up hope that there is some mechanism by which they can be distributed in connection with a participant's transfer from one of the employer's plans to another (the way that some mandatory after-tax contributions to DB plans are, see, e.g., Rev. Rul. 60-281). Is there such a mechanism? If so, I haven't been able to find it. Thanks.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...