in-service difference between annuity and custodial accounts

[Belgarath]

This is purely idle curiosity, so please don't waste any time if you don't know this off the top of your head.

Just wondering why the regs were written to make non-deferrals eligible for pre-59-1/2 in-service from an annuity contract, but not from a custodial account (other than hardship).

Intentional? Oversight? One of those items lost in antiquity in the days when 403(b)'s were all annuity contracts?

Again, doesn't matter - just seems odd.

[Josh62]

I see that no one has responded to your question. Actually, the regulations did not change anything. This difference has always existed in the IRC. See IRC 403(b)(7) and (11). Prior to the regulations there was no stated restrictions on in-service distributions of non-elective contributions to an annuity contract. What the regulations did was to set our in 1.403(b)-6(b) that the plan should have the stated event that would allow the distribution prior to severance was some applicable references.