In service rollovers

In my many years of practice, I have never ran across this question: Can a plan have an "inservice rollover" provision for any reason?  No age restrictions or years of service provision. I have never seen this in a pre-approved plan document. Several internet providers are saying this is possible and we know how reliable the internet is. 

Could it be done with an IDP?

It's hard to say without knowing what you are really asking. If you are referring to an "in service rollover" from a taxable account to a Roth account, yes, this is allowed, and is a common provision. Of course, your specific document must allow Roth deferrals, and must provide for such an in-service rollover/transfer, but that shouldn't be a problem.

If you are referring to something else (can't quite imagine what it might be) you'll have to explain.

This is likely a whisper-down-the-lane kind of thing where someone did in fact do an in-service rollover, because they were 59 1/2 and the plan allowed it, and someone else missed that subtle (hah) nuance and then repeated it to someone else who took it a step further and now it is a "fact."

(Profit sharing money can be distributed earlier, if the plan allows it, which would be rare. I'm pretty sure that's not what this is about.)

11 hours ago, Soundbc1 said:

Several internet providers are saying this is possible

Care to share some links?

Unless you are talking in-plan Roth conversions you have two separate issues at play:

1. Under the terms of the plan, as limited statutorily, what contribution sources are available for distribution and under what conditions?

2. Is the distribution rollover eligible?

Some types of contributions (401(k), safe harbor, QNEC, defined benefit/cash balance, etc.) have age restrictions on in-service distributions. Other types (profit sharing, match) might be available earlier but may have conditions (like full vesting or be in the plan x years). Then there are conditions that could apply to 401(k) and other sources, like hardships.

Most but not all distributions are rollover eligible.

Read the plan - it may be (and usually is) more restrictive than statute, but can NEVER be less restrictive, and ALWAYS governs.