Which feature is NOT applicable to money purchase pension plans regarding in-service distributions?

In-service distributions in a money purchase pension plan are indeed subject to specific rules, and one of the key features of these plans is that participants are not permitted to take in-service distributions prior to retirement or a specific triggering event, such as reaching a certain age or hardship withdrawal.

While it is true that certain qualified withdrawals or distributions can occur under specific conditions after reaching a specific age, in-service distributions themselves are generally restricted until those conditions are met. Therefore, the statement that in-service distributions are prohibited aligns accurately with the characteristics of money purchase pension plans, making it the correct option in this context.

Understanding the limitations surrounding in-service distributions helps clarify how money purchase pension plans are structured. In contrast, other options mention conditions allowing distributions or their implications, which reflect the situations where in-service distributions would be applicable and permissible under retirement plan regulations.