davef Posted October 25, 2006 Posted October 25, 2006 Looking at new Code Section 401(a)(36), it appears that the new rules allowing in-service distributions at age 62 will also apply to money purchase and target benefit plans. Many of the PPA summaries only refer to DB plans as being impacted by these new rules. Am I missing something?
Guest tellidaho Posted October 25, 2006 Posted October 25, 2006 At least one of the summaries I have read agrees that it would apply to money purchase plans.
Effen Posted October 26, 2006 Posted October 26, 2006 Money purchase and targets? I can't believe you still have some. Do you also work on Keoghs? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted October 26, 2006 Posted October 26, 2006 Effen, we've got a bunch of targets also, although I discourage new ones. They can be more efficient than a cross tested PS plan because they are exempt from the 5% or 1/3 gateway, so the cost for younger employees can be less that the alternative. And some non profits still maintain MP plans so employees have a guarantee. I must admit the super top heavy 415(e) calcs are still messy for those combos though.
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