Distributions - Plan Termination

[Guest h_nowicki]

In a Plan termination situation, what is done with participant account balances that do not return paperwork and have larger balances (over 5,000)? Does there come a certain point where the client can pay out the balances, or does the plan have to linger until the paperwork comes back?

Thanks

[WDIK]

http://benefitslink.com/boards/index.php?s...opic=27286&st=0

[Guest h_nowicki]

Thanks WDIK

[E as in ERISA]

But note that we've passed 3/28/2005 and the automatic rollover rules are now in play. Some believe that automatic rollovers apply to distribution of any balances between $1,000 and $5,000. Some believe that automatic rollovers only apply where distribution is only occuring because of the plan's cash out provision -- and does not apply where the distribution is occurring under the plan termination provision. (They are two separate exceptions to the consent requirements under 1.411(a)-11 and two separate plan provisions and it is arguable that the automatic rollover rules only apply to the pure cash outs).