Operational Violation w/r/t Distributions?

[Biz Develop Consultant BJF]

When the plan document election requires a $500 minimum on distributions, both termination & in-service would a recurring distribution of an amount less than $500, e.g. $150/mo be considered to violate that and create an operational violation?

[Kevin C]

Like most plan related questions, the answer is "what does the plan say?"  If the plan says the $500 minimum applies to recurring distributions, then allowing smaller recurring distributions would be an operational failure.  If the document language isn't clear, then it needs to be interpreted by the person the document says has the authority to interpret the document.  That is normally the ERISA Plan Administrator, which may be the employer.

[Mike Preston]

Betcha' a buck that the OP is reading the form wrong.  It probably establishes a minimum of $500 for each rollover if and only if the participant is electing two or more rollovers from a single distribution.