In-Service Distribution

We have a new plan where the trustee wants to take an in-service distribution of $300k. He is 43 years old. He wants to pay all the taxes on the distribution. I have never administered where it was allowed for anything other than 59.5 or early retirement.  Can a plan allow in-service prior to 59.5 or early retirement?  

And, I assume you mean a participant wants to take the distribution. Owner, trustee, etc are irrelevant to this discussion.

This plan is a 401k SHNE with New Comp.

So, he could take PS money, but only if the plan allows for in-service distributions of that source and at that age.

Does he have any rollover money in the plan?  The plan may allow in-service distributions of rollover at any age.

Pam Shoup:  Can you cite the ERISA section for your statement that money rolled over into a defined contribution plans can be subject to and in service distribution (not rollover) at any age and without the usual allowable hardship reasons. 

Thanks,

David   

I don't know the cite but I do know that it's been a provision in our prototype document going back at least to the GUST document (and probably earlier) that you could have rollover money available for distribution at any time or subject it to the any other restrictions you general have on in-service distributions.

1 hour ago, fmsinc said:

Pam Shoup:  Can you cite the ERISA section for your statement that money rolled over into a defined contribution plans can be subject to and in service distribution (not rollover) at any age and without the usual allowable hardship reasons. 

Thanks,

David   

https://www.irs.gov/retirement-plans/plan-participant-employee/when-can-a-retirement-plan-distribute-benefits

Not exactly a cite, but first thing I could grab in a pinch.