Mandatory Roll OUt

[Guest BigBish1966]

I know EGTRRA allows a rollout provision as an optional Plan benefit. Has there been any legislation that makes <5000.00 rollouts a mandatory provision?

[Brian Gallagher]

it's not mandatory--optional. document issue. can make the $ amount anywhere up to and including $5000.

our document allows for the plan administrator to require participant consent for all distributions.

[Guest planman]

Are you referring to the mandatory rollout that must go to an IRA? That said if a plan chose to do force-out distributions of under $5,000 then the distributions between $1000-$5000 must go to a default IRA. Regs were supposed to be out by July 31, but they are delayed and have not come out. The requirements have some real obstacles to make them workable.