In-Service Withdrawal
A withdrawal made from a plan account before the holder experiences a triggering event. Investopedia Says:
Some plans, such as profit-sharing plans and 401(k)s, allow for distributions to be made before a triggering event occurs. In most other instances, these withdrawals will be penalized according to the 10% standard. Related Terms:
Individual Retirement Account - IRA
IRA Adoption Agreement and Plan Document
IRA Conversion
Non-Qualified Distribution
Ordering Rules
Qualified Distribution
Recharacterization
Reconversion
Required Minimum Distribution - RMD
Roth IRA
Spousal IRA
Triggering Event |