Although the participant may be eligible to withdraw the funds if a plan is terminated as a result of an acquisition or other similar transaction, this does not mean that the 10% penalty will be waived. However, the participant would qualify for an exception if he/she meets any of the requirements as listed under the Tax Code. Please see Page 29 of IRS Publication 575 for a list of exceptions.

For more insight, read Tough Times ... Should You Disturb Your Qualified Plan's Assets?

This question was answered by Denise Appleby
(Contact Denise)





comments powered by Disqus
Trading Center