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Company A and Company B are controlled. Company A Sponsors Plan A and Company B sponsors Plan B. Both are 401k plans. Participant is leaving Company A and going to work for Company B. Can she request a distribution? Can she roll over her funds from Plan A to Plan B? Note the plans will be merging into one plan in September.

Posted

Single employer, no severance from employment, no distribution, no rollover.

If the participant is entitled to an in-service distribution, that could be rolled over depending on plan terms for accepting rollovers.

Plan to plan transfer is possible if plan terms provide for it.

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