Money Purchase Pension Plan Rollover
Can a MPP participant roll assets from his MPP to his IRA while still employed and actively receiving MPP contributions? Is the answer dependant on general IRS rules or the specific rules of his particular MPP? If it depends on the MPP rules, should it be allowed if not specifically disallowed by the MPP?
Permalink Submitted by mk foss on Wed, 2012-01-04 17:32
The plan would have to allow for “in service” distributions to allow a distribution to someone still employed. If the plan has no such provision, it can be amended to add one.
If the amount of the distribution to be rolled over is greater than $5,000, a married participant needs spousal consent.
Permalink Submitted by Martin Helmer on Thu, 2012-01-05 03:02
I agree with Mary Kay and would also note the stricter distribution rules applicable to ‘pension’ plans compared to profit sharing/401(k). The employee would have to have reached the younger of the plan’s stated retirement age or 62. See IRS worksheet question II. c. on Form 5626. Additional details and the cite is in Publication 6392, item II. c.