Installment payments at Termination

[Nassau]

My client is requesting information about terminated participants under the age of 59.5 who want to take installment payments and believe that this can be done without a 10% penalty if taken as substantially equal payments.

Plan document allows installment payments.

Please advise what Regulations or Code addresses this information?

[mbozek]

My client is requesting information about terminated participants under the age of 59.5 who want to take installment payments and believe that this can be done without a 10% penalty if taken as substantially equal payments.

Plan document allows installment payments.

Please advise what Regulations or Code addresses this information?

IRC 72(t)(2)(A)(iv).