242(b) election

[thepensionmaven]

I have a doctor client who was fortunate enough to have a plan in force at the time of TEFRA and has a valid 242(b) election and he is not going to retire anytime soon.

The plan is a profit sharing plan and he needed to take an inservice distribution in order to purchase a primary residence.

I do not believe this has any affect on the 242(b) election??

[KJohnson]

I think there is at least one if not two PLRs that come to this conclusion. But, the only person that can rely on the PLR is the one who receives it.

[Bird]

I think you have to read the 242(b) election and see what it says about how distributions must or may be taken and what could effectively revoke it. It's probably going to eventually result in a judgment call; like a lot of things, the basic concept was somewhat clear at the time but no one could predict all of the special situations and circumstances that could arise.