Direct rollover for non-active participant?

[david rigby]

Defined benefit plan is offering a temporary lump sum window to VT participants. The sponsor's DC plan accepts a direct rollover for an active employee.

1. Can the DC plan be amended to permit a direct rollover from a VT participant, when the DC account for this person is currently zero?

2. Same as (1), but assume the DC account is currently non-zero?

(Of course, proposed action is non-discriminatory and would apply to any such VT, without regard to HCE or NHCE.)

[QDROphile]

The plan can accept eligible rollover distributions under its own terms. Generally it is not a good idea to allow rollovers for anyone but "active" participants and I do not think it is discrimination to deny rollovers into the plan for "inactive" participants. Your circumstances are worthy of exception and I think the DC account balance should be irrelevant, but a distinction should not be discriminatory or otherwise impermissible.