The Bipartisan American Miners Act of 2019 allows in-service distributions for retirement plan participants to commence at age 59 ½. However, in a defined benefit plan, to receive in-service lump sum distributions at age 59 ½, the distribution must satisfy certain thresholds. Read on to learn more about defined benefit plan lump sum distribution requirements.
Year-End Required Minimum Distributions (Defined Contribution Plans)
Failure to take your required minimum distribution could result in tax penalties, such as a 50% excise tax on the amount that was not withdrawn.
Is This a Sham Termination?
Is a distribution from a retirement plan valid if the participant is rehired after the distribution occurs or is this a sham termination?
Required Minimum Distributions From Defined Contribution Plans
Once you reach age 70 ½, the IRS requires you to take money out of your retirement account. This withdrawal is called a Required Minimum Distribution (RMD). Most people don’t give RMDs much thought until they have to take one. Required Beginning Date For defined...
Hardship and Participant Loan Documentation
The IRS recently published guidelines for Plan Sponsors to adhere to regarding the documentation of hardship distributions and participant loans. Generally speaking, plan participants sign a distribution form certifying that they qualify for a hardship...
Required Minimum Distributions from Defined Benefit Plans
The IRS requires a defined benefit plan pay a distribution to a participant in an amount at least equal to the required minimum distribution.