In-service distribution periodic payment

[s2mone]

Current plan document allows for in-service distribution for participants who are over 59.5 and employed for 5 years. The withdrawal is restricted to once a year. The client wants to amend the plan to allow multiple (periodic) payments of in-service distribution for participants who are over 70.5 and leave the restriction for once a year for participant who is 59.5. is this allowed?

[Luke Bailey]

I know of no reason why that would not be possible. I think I am aware of many plans that have similar provisions. What you are trying to do, I think, is limit RMDs to the minimum amount, so you are agreeing to more administrative complexity for those.

[chc93]

Maybe ask these over 70.5 participants to take the total of what they want in-service for the year, roll over to IRA, and take their "in-service distributions" from there.  Then a single distribution each year. 

Or even deposit to savings/checking account, but have to withhold 20% taxes for the single distribution at that time... but have to pay taxes anyway.  Might minimize administrative work...