Rehiring or retaining employees past retirement age?

Due to the labor shortage, some employers are rehiring those who’ve retired or keeping employees on the payroll even though eligible for retirement. How does this impact a company’s pension plan? The IRS said employers generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59½ or the plan’s normal retirement age. FAQs address in-service distributions to these employees. #IdeaoftheDay