http://www.rothconversion.org A website to share information and opinions on the new rules for Roth IRA Conversions Wed, 04 Jan 2012 15:52:27 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.rothconversion.org/roth-ira-conversion-knowledgebase/in-service-withdrawals-from-retirement-plans/comment-page-1/#comment-9 Barry Mon, 29 Mar 2010 16:51:04 +0000 http://www.rothconversion.org/?page_id=157#comment-9 There are basically three types of "in-service" withdrawals from the 401(k) portion of a profit sharing plan or an ESOP permitted under the law. Withdrawals due to: 1) a financial hardship [IRC §401(k)(2)(B)(i)(IV)], 2) attainment of age 59 1/2 while still working for the employer [IRC §401(k)(2)(B)(i)(III)]; and 3) diability [IRC §401(k)(2)(B)(i)(I)]. Be mindful that these are the provisions that the law permits employers to include in their plan only. Therefore, many plans may not permit these actions since adding such provisions to an employer's plan is permitted by law but not required. There are basically three types of “in-service” withdrawals from the 401(k) portion of a profit sharing plan or an ESOP permitted under the law. Withdrawals due to: 1) a financial hardship [IRC §401(k)(2)(B)(i)(IV)], 2) attainment of age 59 1/2 while still working for the employer [IRC §401(k)(2)(B)(i)(III)]; and 3) diability [IRC §401(k)(2)(B)(i)(I)]. Be mindful that these are the provisions that the law permits employers to include in their plan only. Therefore, many plans may not permit these actions since adding such provisions to an employer’s plan is permitted by law but not required.

]]> http://www.rothconversion.org/roth-ira-conversion-knowledgebase/in-service-withdrawals-from-retirement-plans/comment-page-1/#comment-8 GrowlinGrizzlyBear Thu, 25 Mar 2010 17:35:45 +0000 http://www.rothconversion.org/?page_id=157#comment-8 Would you please site the specific IRC sections that authorize the in-service withdrawals from 401(k) plans? I have been trying to clarify this for some time and have had difficulty locating the precise legal authority for it. Thanks. Would you please site the specific IRC sections that authorize the in-service withdrawals from 401(k) plans? I have been trying to clarify this for some time and have had difficulty locating the precise legal authority for it. Thanks.

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