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oldman63

Automatic Rollover

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403(b) plan amended, effective 7/1/2018, to add involuntary cash-out provision of distributions of amounts between $1,000 and $5,000, to be rolled over over to an IRA.  Would this provision only apply to participants that terminate on or after 7/1/2018, or could it also apply to participants that terminated prior to 7/1/2018?

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Maybe the document says something?

Some of our docs provide some default guidance in the event the amendment is silent. But we try hard to make amendments crystal clear as to how it is to be effective, so usually it doesn't matter.  

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What if the plan applies the auto rollover provision to all amounts $5000 and below excluding rollovers but the system was set to exclude rollovers so that now there are 20 participants that were not cashed out as their rollovers bring their threshold to over $5000. Can we amend the plan 1/1/18 to include rollovers and apply this provision to the group prior to 2018 that should have been cashed out but were not?

Thanks! 

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