I can find good authority for an exception to the in-service distribution restrictions on money purchase pension plans for distributions to satisfy diversification rights.

I can find good authority for an exception to the in-service distribution restrictions under section 401(k) for dividend distributions.

Is there good authority for in-service distribution of dividends from a stock bonus/money purchase plan ESOP besides an inference from section 404(k) of the tax code?

Hi lizano ---

IRC section 404(k)(5)(B) and Reg. Section 54.4975-11(f)(3).

See Notice 88-56, Q&A 14.