Life insurance in a 401(k)
Question:
Is it possible to distribute 401k owned life insurance while employed (i.e. in service distribution)? or is retirement/ separation from service required?
Thx!
Question:
Is it possible to distribute 401k owned life insurance while employed (i.e. in service distribution)? or is retirement/ separation from service required?
Thx!
Permalink Submitted by Alan - IRA critic on Thu, 2020-11-19 20:42
It depends on the provisions of the 401k itself, as is the case for in service distributions in general. Even if the plan allows it, the disposition of the distribution may vary with respect to the insurance.