IRS FAQ: Rehires Following Bona Fide Retirement; In-Service Distributions Addressed (IRC §401)

Rehires following bona fide retirement and in-service distributions frequently asked questions posted to IRS website October 22. If an employee who has a bona fide retirement and begins benefit distributions (where the plan does not allow in-service distributions), a rehire of such employee due to unforeseen hiring needs of the Covid-19 pandemic will not cause that individual’s prior retirement to no longer be considered a bona fide retirement, the IRS stated. A qualified pension plan may permit individuals who are working to commence in-service distributions, if the individuals have attained either age 59½ or the plan’s normal retirement age. In-service ...