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Who's the Employer?
Answers are provided by S. Derrin Watson, JD, APMSeparation from Service for Pension Plan in CG Situation
| Question 12: Employer A is a member of a controlled group. Employer A adopts a money purchase pension plan. A participant of the plan terminates employment with Employer A and works for Employer B, who is a member of the controlled group but is not an adopting employer of the money purchase pension plan. Is this a distributable event? This question is very similar to question 8 but is a money purchase plan instead of a 401(k) plan. |
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Answer: I take it your problem concerns the prohibition on in-service distributions in a money purchase pension plan. This prohibition comes from Rev Ruls 69-693 and 60-323 and Reg 1.401-1(b)(1)(i). Those, in turn, are based on Code section 401. |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
Copyright 1999-2017 S. Derrin Watson
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