The Bipartisan American Miners Act of 2019 (the “Miners Act”), enacted at the end of 2019, provides that effective for plan years beginning on or after January 1, 2020, in-service distributions from defined benefit and defined contribution money purchase plans may be permitted upon attainment of age 59½. Prior to the Miners Act, these types of qualified plans could not permit in-service distributions prior to age 62. This is a discretionary amendment that is not required.
The Miners Act does not expressly provide for a deferred amendment period, which means that any required amendment must be timely adopted by the end of the plan year for which it is effective. So for calendar year defined benefit and money purchase pension plans that decided to permit in-service distributions at age 59 ½ for 2020, amendments must be adopted no later than December 31, 2020.
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