In-Service distribution quandary

[Kimberly S]

As I understand it, in-service distribution options are a protected benefit that cannot be removed upon plan restatement. Salary deferrals cannot be withdrawn until age 59 1/2 per IRC.

When restating a document in a take over situation, how do I reconcile those statements with the exisiting document's provision allowing in-service distributions from all money types at age 55?

[jpod]

Assuming there is in fact a 401k element to the plan in question, are you sure there isn't the boilerplate language restricting distributions of elective deferrals buried somewhere in the plan? If it is a prototype or volume submitter document, that language has to be there. If the distribution restrictions are not recited somewhere, your client has a different problem than the one you've identified (or perhaps an additional problem). On the other hand, if there never was never any 401k element to the plan, you don't have a problem.