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Posted

An participant in a 403b was fired and has requested distribution of her retirement plan accounts.  She has also filed a grievance of wrongful termination through her union and wants to be re-employed.  Although I'm told it is not likely she will win, Should the plan act on the distribution request, even though there is a chance she would be rehired soon?

Thank you

Posted

According to the facts, the participant is no longer an employee.  To the extent the plan provides for an immediate distribution upon termination, then the plan should act upon the distribution request.  If the participant is later re-employed, then they will be subject to the re-hire rules. 

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