Exploring in-service distributions

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Topic overview

In-service distributions, also known as non-hardship distributions, allow participants in 401(k) and other types of qualified retirement plans to withdraw some or all of their plan account balances while they’re still working for the businesses sponsoring their plans.

Plan participants may find that an in-service distribution and IRA rollover could provide them with access to more investment options, risk management and diversification strategies, and guaranteed retirement income options.

Use these tools to help your clients ensure their retirement assets are integrated into their broader financial plans and managed in the most efficient way to help them reach their financial goals.

Is this relevant to my clients?

Plan participants are more likely to have an interest in using in-service distribution provisions if they:

  • Are dissatisfied with the range of investment options in their workplace retirement plans
  • Are dissatisfied with the level of investment assistance and advice offered by their workplace retirement plans
  • Have accumulated significant plan assets and want assistance to manage those assets through an IRA rollover