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Can a governmental money purchase plan allow in-service distributions

Guest wjr

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Can a Governmental Money Purchase Plan allow for in-service distributions of vested employer accounts. If they can, are they subject to the general profit sharing type rules that the money must have been in the plan for 2 years or 5 years of participation?

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No. A pension plan (including a money purchase pension plan) is not permitted to make distributions of any benefits attributable to employer contributions until the earlier of (a) attainment of normal retirement age, or (B) separation from service.

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

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