Topic Archive: In-Service Distributions

Can a Participant Get a Jump on RMDs & Start Taking Them a Few Months Early?

DWC | 11/6/18

Facts

One of the non-owner participants in our 401(k) plan will be turning 70 in April of next year (2019).  That means she will reach age 70 ½ in October and will need to start taking required minimum distributions.  The participant knows her first RMD is due no later than April 1, 2020, but she has asked whether she has to wait that long to actually withdraw the money. 

Read More

Can In-Service Distributions be Taken Prior to Age 59 1/2?

DWC | 10/23/18

Facts

One of the participants in our 401(k) plan heard from a friend that it is possible to take money out of a plan while still employed.  I’ve always heard that age 59 ½ is the rule of thumb as to when in-service distributions are allowed, but this participant is only in her mid-40s.  She has about $100,000 in the plan: $65,000 in employee deferrals, $25,000 in safe harbor matching contributions, and $10,000 in profit sharing.

Read More

Can a Company Owner Withdraw More Than the Required Minimum Distribution After Age 70 1/2?

DWC | 09/5/17

Facts

One of the owners of our company is 73 years old. She remains actively employed by the company and does not show any signs of cutting back or quitting any time soon. She has accumulated a significant account balance in the 401(k) plan and has been taking her required minimum distributions (RMDs) each year since she reached age 70 ½.

Read More
The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.