DC plan - post termination amendment to allow partial distributions

[Belgarath]

Any reason DC plan that didn't allow partial distributions at termination date (12/31/2017) can't be amended to allow them now? Final distributions won't be available for quite some time, and they want participants to be able to receive some money currently.

I think it is fine, but I seem to recall some post-termination amendment issues with DB plans particularly.

Thanks.

[Bird]

OK by me

[BG5150]

4 hours ago, Belgarath said:

 Final distributions won't be available for quite some time, and they want participants to be able to receive some money currently.

 

Could someone take a 99.9% partial withdrawal?

[Larry Starr]

There is nothing that prevents a partial distribution of the termination payout with the balance to be paid later.  It is not an in-service withdrawal, it's a termination distribution.

[ESOP Guy]

On 1/12/2018 at 1:04 PM, BG5150 said:

Could someone take a 99.9% partial withdrawal?

In most plans that do this the trustee determines the percentage of the payout.  This allows the people to get some of their money while the plan gets the D Letter and other final actions happen.  It keeps the people happy while the plan can do what it needs to do to make sure all is good. 

[Bird]

10 hours ago, ESOP Guy said:

 It keeps the people happy

In theory anyway; some self-appointed expert might whine about it...

[RatherBeGolfing]

1 hour ago, Bird said:

In theory anyway; some self-appointed expert might whine about it...

"They let me do it in my old plan, therefore I must be allowed to do it in this plan"

- old participant proverb

[Belgarath]

Thanks all.