44A. Money purchase (including target benefit) plans – restriction on in-service…

82 | D e f i n e d C o n t r i b u t i o n P l a n L R M P a c k a g e 0 1 / 2 0 2 4

Statement of Requirement: Code § 401(a)(36); Reg. §§ 1.401-1(b)(1)(i) & (ii); Notice 2012–29, 2012-18 I.R.B. 872

(Note to reviewer: The SECURE 2.0 Act of 2022 added several distribution restrictions applicable to employer contributions under a profit-sharing plan. For example, profit-sharing plans can make an in-service Lifetime Income Investment Distribution (LRM #69), Qualified Birth or Adoption Distribution, Coronavirus- Related Distribution (LRM #77) or a Distribution for Domestic Abuse Victims (see CODA LRM XVI).)

Sample Plan Language:

A participant’s benefit under the plan may not be distributed before the participant attains age 59 ½ (age 62 for plan years beginning before January 1, 2020) or, if earlier, the participant separates from employment, attains normal retirement age under the plan, dies, or becomes disabled, or upon termination of the plan.

(Note to reviewer: See the discussion regarding normal retirement ages earlier than age 62 accompanying LRM # 14A.)