Plan allows participants to elect an immediate distribution of rollover account balance. Want to amend plan to allow distribution of rollover account only when there has been a distributable event (ie, termination of employment, retirement, etc.).
We are trying to move from one prototype plan to another. The current prototype allows immediate distributions of rollovers and the new prototype does not. I would think this is a cutback with respect to rollovers put in the plan prior to the effective date of the amendment. Any thoughts?

It sounds like an elimination of an optional form to me. I haven't gone back and looked at the regs, but I don't recall an exception.

The ability to take an immediate, in-service withdraw of amounts rolled over into the plan from another qualified plan is definately a protected benefit under Section 411(d)(6). Accordingly, it may not be eliminated by plan amendment.

Hi,
We're having a disagreement here in the office. Is the right to an in-service withdrawal after five YOP a protected benefit as well? We have a plan that wants to eliminate it and some of us are thinking that it is an optional form of benefit that is protected to the extent it is accrued. But, of course, can find no true guidance in the Code. Your opinions are welcomed.
Thanks

In my opinion, that would be covered under 411(d)(6). See Q&A-1.
http://www.access.gpo.gov/nara/cfr/cfrhtml...26cfrv5_00.html