How do you use Rev Rul 69-277 after Notice 2014-54?

[msimpson]

Rev. Rul. 69-277 says it's okay to distribute voluntary after-tax contributions from a qualified plan at any time. This still appears to be good law, as it is cited as recently as in Notice 2004-12.

How does this interplay with IRS Notice 2014-54? If a plan has both pre-tax and after-tax amounts in it, can a participant withdraw just the voluntary after-tax contributions? Or does 2014-54 require that any distribution (even if no "distributable event," meaning they are still employed, not over 59-1/2, etc.) be a pro rata mix of pre-tax and after-tax?

I keep thinking there must be some way to withdraw just the voluntary after-tax, otherwise 69-277 is useless, but can't figure it out. Does it hinge on a "distributable event" issue?

Any help would be appreciated!

[QDROphile]

Post-1986 non-Roth after-tax contributions are treated as a separate contract under section 72. Any distribution of the after-tax amount will include a pro-rata share of earnings and the earnings are taxable.

[msimpson]

Thank you. Can you tell me what part of 72 covers this? I'm trying to wrap my head around the legal authorities to make sure I understand the reasoning.

Also, in the scenario I'm thinking of, the after-tax amounts will likely be distributed without any earnings. (They were a failed/incomplete attempt to purchase additional service credit in a governmental DB plan.)

[QDROphile]

I had in mind section 72(d)(2), but that may not fit your circumstances. I did not check the rulings you cited for context. Section 72(d) is applicable generally to qualified plans.

[msimpson]

Again, thank you. I'll take a look at that and see if I can make it all make sense.