Involuntary Cashouts / Auto Rollover Rules

[Guest IRISH79]

Treasury and DOL regulations require that a notice be provided within a reasonable time period before a mandatory distribution, stating that in the absence of an affirmative election to direct a rollover to an eligible retirement plan, the distribution will be rolled over to an IRA. Notice is provided on employee's date of termination explaining the auto rollover rules. Assume a year goes by and the terminated participant's account balance drops to between $1,000 and below $5,000. Is a notice required or can the account balance be automatically rolled over to an IRA based on the notice provided at date of termination?