Participant is 59.5... can he take dist?

[K-t-F]

A participant has quite a bit of $ in the plan. Straighe PS plan. Wants to take a good chunk out. He is older than 59.5. He is not terminating.. it is not a hardship... he is more than a 5% owner. Just wants to take $200K+ out to invest in a business with one of his children. Can he do it?

Thanks

[J Simmons]

It depends on what the plan document provides. It's possible if either in-service distributions of the profit sharing benefits are allowed and the amount to be withdrawn derives from contributions made at least two years before withdrawal. It's also possible if the normal retirement age is such that he has already reached that age.

If not but an amendment is considered, first analyze regarding whether doing so would, given the timing, be discriminatory.