In-Service Withdrawal, Single Payment Clause Samples
The In-Service Withdrawal, Single Payment clause allows a participant to withdraw a portion or all of their vested account balance from a retirement or benefit plan while still employed, receiving the amount as a single lump-sum payment. Typically, this clause outlines eligibility requirements, such as minimum age or years of service, and specifies the process for requesting and receiving the payment. Its core function is to provide employees with access to their funds in specific circumstances before separation from service, offering financial flexibility in cases of need or opportunity.
In-Service Withdrawal, Single Payment. The subaccount will be paid in a single payment on the first Payment Processing Date that occurs during the month and year selected by the Participant. The Participant cannot choose to receive the single payment until the second year following the year in which the Participant Deferral occurred. For example, unmatched Participant Deferrals made in 2008 cannot be withdrawn pursuant to this paragraph until January 2010. If the Participant Separates from Service before receiving the single payment, (1) if the single payment is scheduled to be paid during the six months after the Separation from Service, it will be paid as scheduled, and (2) if the single payment is scheduled to be paid more than six months after the Separation from Service, it will instead be paid on the first Payment Processing Date that occurs six months or more after the Separation from Service.