Pixie Posted December 4, 2007 Posted December 4, 2007 My plan doc does not allow for inservice withdrawals. However, I have a participant that has attained age 65 that wants to take one. Do we have to allow for this?
Jim Chad Posted December 4, 2007 Posted December 4, 2007 The employer can amend the document to allow for in service withdrawels. But it is not required in any way.
rcline46 Posted December 4, 2007 Posted December 4, 2007 CHeck your document for special inservice at NRA, it may already be there. If not, add only for those at NRA.
david rigby Posted December 4, 2007 Posted December 4, 2007 If you amend, be careful that you don't create a discriminatory set of circumstances. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Pixie Posted December 7, 2007 Author Posted December 7, 2007 Thank you for the information. I have a new situation with my participant in question. His account transferred from another plan that was merged into the plan he is in now. He says that the old plan allowed in-service withdrawals at age 59 1/2. Do the old in-service withdrawal provisions apply to funds received by the new plan? His balance is huge so I want to be careful with this.
Kimberly S Posted December 10, 2007 Posted December 10, 2007 In service withdrawals are a protected benefit. If the plans truly merged, that provision should have carried forward. If the old plan was terminated and some participants elected to roll their balances to this plan, it would not have to carry forward.
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