pam@bbm Posted September 5, 2018 Posted September 5, 2018 A 56 year old 401(k) plan participant terminated his employment in May after working with the company for over 30 years. He was rehired in July to a position that is not an eligible class for participating in the plan so he is considered an inactive participant. He did not request his distribution during the time he was gone, but of course now he wants it. The plan does not allow in-service withdrawals and is silent on the subject of a rehired participant taking a distribution due to the prior separation of service. I don't believe he is eligible for the distribution now. Other than amending the document to allow for in-service, can anyone give me some guidance on this or a regulation? Thanks for the help.
PensionPro Posted September 6, 2018 Posted September 6, 2018 You are correct that he is an active employee and may not be paid as a terminated employee. ERISAAPPLE 1 PensionPro, CPC, TGPC
Larry Starr Posted September 6, 2018 Posted September 6, 2018 22 hours ago, PensionPro said: You are correct that he is an active employee and may not be paid as a terminated employee. Agree 100% . It's his problem; don't make his problem your problem! Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
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