Jump to content

In Service Withdrawal after the plan is terminated


Recommended Posts

I have a plan that has terminated, but the employer is still continuing. We are now working on the final administration, etc. before payouts. A participant is requesting an in-service distribution (which was allowed by the plan). Is this still a valid request after the plan termination date? Thanks.

Link to comment
Share on other sites

You don't say what kind of plan, but I know that if a defined benefit plan terminates, the final distribution can include in-service payments to active participants. Is this not also true for terminating defined contributions (especially if the plan allowed in-service distributions outside of the plan termination context)?

Always check with your actuary first!

Link to comment
Share on other sites

I don't work on DC plans, but it seems to me that if the plan has terminated, whether the employer continues or not, all plan benefits/account balances have to be distributed, even for those remaining in active service. Why would there be a problem for allowing in-service distributions for a plan that has terminated if you can do that while the plan is still ongoing?

Always check with your actuary first!

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...