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


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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!

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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.)

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