Can There Be In-Service Distributions From A Cash Balance Plan?

I didn't think so, but I have a client asking so I wanted to confirm.  The participant is under Retirement Age and was hoping to take out a portion.

Thanks in advance!

What does the plan document say?  Overall, yes you can have in-service distributions, but whether your particular plan allows them is defined by the document.

The American Miners Act dropped the permitted in-service age for pension plans to 59½, but yes, it has to say that in your document.

Nothing wrong with it, assuming it is permitted by the plan document and occurs after the participants is at least 59.5, or whatever minimum age is set in the document, if higher.

Thanks everyone!  Was just reviewing our document software to amend the Plan to allow and it states that the participant has to be at least 62-years old, but it sounds like that's been lowered?

Our document software also seems to indicate that it's a monthly benefit, but can it be a lump sum?

Maybe it's just me, but I think something else is going on.  As is often the case, you may need consulting advice, more than the facts presented here.  You are urged to contact the plan actuary, who will ask deeper questions.  For example, the most important questions will be, "What are you trying to accomplish?  And why?"

And/or ask the software vendor how to exactly make the changes you need so nothing is overlooked

Good advice from both David & BG5150, but to answer your question directly, no problem with lump sum assuming it is permitted by the plan document.