No elective deferral suspension for non-hardship in-service distribution....Right?

[ERISAatty]

Hi, everyone,

Just need to make sure I'm not missing something here.

I know that under 1.401(k)-1(d)(3)(iv)(E)(2), a 401(k) participant who takes a hardship distribution must suspend deferral contributions for six months.

I can't find any corollary deferral suspension requirement in connection with a non-hardship distribution after age 59 1/2 under a plan that allows in-service distributions.

Can anyone confirm that this is correct? (i.e. that no deferral suspension applies to a non-hardship in-service distribution)

Thank you!!!

[Tom Poje]

none that I know of, and I've never heard anyone else say that stopped deferrals because of an in-service withdrawal.

[masteff]

Only if the plan says to. I had a plan that had restricted in-service withdrawals and required suspension despite it not being deferral source money.

[QDROphile]

The six month suspension after a hardship distribution of elective deferral amounts is only a function of plan provisions (not law), so you can be confident that only plan terms would be the source of restrictions on account of other distributions.