Search the Community
Showing results for tags 'automatic rollover'.
Found 3 results
-
Seeing as how 401(a)(31) is a statutory provision, does a Plan need a separate document provision electing to be able to use an automatic rollover, or is it available to any Plan the claims qualification under 401(a)? The DC LRM from 10/2017 includes a required provisional statement about automatic rollovers, that references the mandatory distribution section, but no adoption agreement provisions are noted as needing to be included. Also, the mandatory distribution section the LRM notes that should be included, is not addressed anywhere in the LRM. -
The client received a letter from the their record-keeper letting them know that Millenium Trust will handle the automatic rollovers effective next year and inquiring whether they want to reduce the automatic cash out threshold from $1,000 to $0. If I understand correctly, this means that all terminated participants who did not make an election and have a balance below $5,000 will automatically be rolled over to Millenium, instead of processing a lump sum? If the account is $200 and the distribution is $50, $150 will be rolled over instead of issuing a check to the participant. Can that be done? Reduce the rollover threshold to $0? -
Our plan document allows us to set the threshold for automatic rollovers below $1,000. We are considering lowering the amount to reduce the number of cash-outs, which sometimes become unclaimed checks. Anyone else using a lower number? Results? Is there any number considered too low?