Susan S. Posted June 15, 2021 Posted June 15, 2021 A 401(k) plan with a Relius document allows "partial withdrawals in excess of the required minimum distribution." A retired participant took her RMD in February, plus an additional partial withdrawal of $2k. Now she wants another partial withdrawal. Can the document language be interpreted as allowing multiple partial withdrawals in the same year that are not distributed at the same time as the RMD payment?
Mike Preston Posted June 15, 2021 Posted June 15, 2021 It depends on whether you think the s in withdrawals has significance or not. ESOPMomma 1
C. B. Zeller Posted June 15, 2021 Posted June 15, 2021 Is there anything in the document that says withdrawals are limited to one per year? Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
BG5150 Posted June 16, 2021 Posted June 16, 2021 Talk tot he document provider. See what they have to say. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Susan S. Posted June 17, 2021 Author Posted June 17, 2021 The guidance I received from FIS / Relius is that there are no restrictions on the number of distributions per year. The participant can take as much as she wants and as frequently as she wants.
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