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?