Involuntary cashouts

[Guest mparker2028]

This is a two part question

For a plan that was amended to reduce the involuntary cashout limit to $1000, is there a required amount of time to wait for signed distribution forms before paying out a participant in this situation? Does this rule mean that if I quit and my vested account balance is $800.00, the Plan can cut me a check for $640 and send the rest to IRS without asking me? Is the plan required to have signed distribution forms on file for me (this usually comes up in the annual 5500 audit of some large plans we have).

Secondly, if participant's vested account balance is between $1000 and $5000, the Relius distribution forms have a section for "Proposed Distribution Date". What period is considered reasonable to enter here?

thank you

[namealreadyinuse]

Code Section 402(f) special tax notice must be sent at least 30 days before any eligible rollover distribution unless the participant waives the delay in writing.

If you reduce the cashout to $1k, the category from 1K to 5K is no longer significant. It should just be 1K+. Many (most) documents provide that distributions will be made as soon as adminitratively practicable, whatever that means.