Distribution Fee Exceeding Participant Acct. Balance

[Guest Thomas2006]

401(k) Plan with automatic cashout feature for participant's with vested account balance less than $1,000. The distribution fee charged by the plan administrator for a distribution is $25. If a participant has a vested account balance less than $25 does the Plan have to distribute the balance? Is there any guidance on this issue? Thanks.

[david rigby]

A few prior discussions on similar topics. for example, http://benefitslink.com/boards/index.php?showtopic=23731

For others, you might try the Search feature.