Using PenChecks to Dep. Er Contribs

[austin3515]

Got a situaiton where a client wants to take an in-service distribution of his 2010 profit sharing contribution (he's going to roll it to an IRA provider that does not allow 401k accounts).

Would it be acceptable to have him deposit the check to PenChecks (which allocates the money to an account in the plan's name, or at least segregates it at that level) and then have Penchecks process the rollover?

I'm sure there is not a separate account in the name of the plan, but since penchecks is acting as the agent of the Plan, then shouldn't this be OK?