Over 70 and a half, still working, wants a full dis'tn from account

[Guest Iwonder]

Participant is over 71 years old and still actively employed in the company.

Participant wants a full distribution from her 401(k) account (distribution would be in excess of RMD).

Participant does not claim hardship - participant (knock wood) merely wants to enjoy her life.

Plan does not permit loans and is very restrictive on when distributions are available (retirement, termination, death, disability).

We understand that participant may begin withdrawing from 401(k), but can she withdraw more than her RMD (EVERYTHING at once)?

[Belgarath]

Does the plan allow distribution upon attainment of Normal Retirement Date?

The RMD is only a required minimum. Subject to plan provisions/requirements, you can otherwise always withdraw more than the minimum.

[david rigby]

Does the plan allow distribution upon attainment of Normal Retirement Date?

If not, and if the plan sponsor agrees, the plan can be amended to add this, assuming such provision applies to all participants over NRA.

[QDROphile]

Why over NRA? Why not after age 70 1/2?

[david rigby]

Why over NRA? Why not after age 70 1/2?

good point. Q is correct.

[Belgarath]

What if the employee wasn't hired until age 69, and NRD is 65/5? That's the only reason I specified NRD. Am I missing a point here? (Probably...)