WIthdrawing your 401k account at age 65 & still working

[ratherbereading]

I have a plan that is on a McKay Hochman document. The plan does not allow in-service withdrawals. There is a participant who is 69 and wants to withdraw his money and is still working. The base document looks like it allows for that. I can't see anything referenced in the adoption agreement, but the SPD seems to agree with the base document. My co-workers say no, because there is no in-service provision, he cannot take his money. Thoughts?

Thank you in advance!

[mbozek]

Question is when can a participant withdraw funds? Does the plan just prevent withdrawals before normal retirement age such as 65 or does plan say that no withdrawals are permitted until participant terminates employment regardless of age which begs the question what happens if employees continues to work after attaining age 70 1/2?

[ratherbereading]

The doc doesn't specifically say no w/d until 65,

[mbozek]

But when does the plan allow distributions to be made?. As I understand it under the IRC all qualified plans have to permit distributions to commence no later than 65. That means there must be some provision the plan document that states when participant may receive distributions such as termination of employment, disability or death. Are you saying that the plan only allows distribution after termination of employment?

[ratherbereading]

It allows distributions for death, disability, or retirement. So, while he is at retirement age, he is still working so not technically "retired."

[mbozek]

Is retirement defined in the plan definitions or in the adoption agreement? There must be a provision that defines what is normal retirement age no later than 65 b/c this is required under the IRC. Some plans define when distributions can be made in the adoption agreement in a check the box format.

[jpod]

Extremely unlikely in my experience that BPD allows withdrawals at/after NRA while still working (other than RMDs for 5% owners). If in-service selections were not made in AA most likely no ability to withdrawaw even at NRA.

[ratherbereading]

Thank you!