401K in-service distrbution to IRA

I have a law firm client that has a 401K that does not allow for In-service distributions. Can an existing plan be ammended to do so? There are 8 attorneys the youngest being 67.



A 401(k) plan can be amended to allow in service distributions. Employee deferrals cannot be withdrawn before the employee has reached age 59-1/2. That’s not your problem but the amendment should probably include that language in case it would ever apply.

The amendments must not discriminate in favor of the highly compensated – even if the plan only covers highly compensated folks.

If they’re using a plan provided by the custodian or plan administrator, the entire plan may need to be amended or rewritten to accomodate the needs of this group.



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