Plan contribution after required beginning date

[Ken Davis]

We have a 401(a) money purchase pension plan that has a provision for which I'm trying to find the source. If a participant continues working after his/her required beginning date the employer would continue making plan contributions to the employee's account. But the plan has a provision that requires those post-required beginning date contributions to be distributed to the employee by December 31 of the first calendar year following the calendar year of the contribution. Is there an IRC or tax regs requirement for that provision? If so, please supply the cite. We are a governmental employer, if that makes a difference.

Thanks,

Ken Davis

[QDROphile]

The design is not compelled by law, but such designs can serve well. Without more details, the purpose and benefits can't be evaluated. It is posssible that the design has become corrupted or no longer serves its purpose, or the desire behind the design has changed.