In-Service at Age 55

[CLE401kGuy]

The plan permits in-service distributions at age 55 from all sources (sources here are elective and match) - are there limitations on what the participant is permitted to take from the elective source? Under age 59 1/2 is the participant only permitted to take the sum of the elective contributions (i.e. not the earnings on the elective)? Thanks!

[rcline46]

I get that question from people in my office and I am stunned every time. I refuse to answer, and I make them bring me a copy of the adoption agreement pages when in-service is mentioned, or the plan document otherwise. I then make them read the document to me. Sometimes, they have to read it a couple of times!

Then I ask if the requested in service is actually a hardship request, and if so does the plan permit hardship distributions. If not a hardship, my final question is prefaced by 'You have to know the fundamental rules cold. What part about 59 1/2 do you not understand?' After a quiet 'oh' they leave my office quickly.

[CLE401kGuy]

I get that question from people in my office and I am stunned every time. I refuse to answer, and I make them bring me a copy of the adoption agreement pages when in-service is mentioned, or the plan document otherwise. I then make them read the document to me. Sometimes, they have to read it a couple of times!

Then I ask if the requested in service is actually a hardship request, and if so does the plan permit hardship distributions. If not a hardship, my final question is prefaced by 'You have to know the fundamental rules cold. What part about 59 1/2 do you not understand?' After a quiet 'oh' they leave my office quickly.

It's not a hardship so the participant is not eligible to take any amount out of the elective source - unless he terminates employment - participant is age 56 - so close but no cigar!

[BG5150]

Would a loan be option for this participant?