Does this have any implications for my situation or are there no options at all after April 15? I am over 59 1/2 and I also filed for an extension on my tax return.
IRC Section 401(a)(30), Section 1.402(g)-1(e)(8)(iii) provides that distributions of excess deferrals after the correction period may be distributed from a 401(k) plan only when permitted under IRC Section 401(k)(2)(B).
Section 401(k)(2)(B)(i) provides that amounts attributable to employer contributions made pursuant to an employee’s election may not be distributable from a profit-sharing plan earlier than (I) the employee’s separation from service, death or disability; (II) an event described in § 401(k)(10); (III) the employee’s attainment of age 59 ½; or (IV) the employee’s hardship. Events described in § 401(k)(10) include (i) the termination of the plan; (ii) the disposition by a corporation to another corporation of substantially all the assets used by the selling corporation in a trade or business; and (iii) the disposition of a corporation’s interest in a subsidiary. (III) applies to the EE in question.
