Automatic Rollover to non IRA

[30Rock]

If a participant fails to respond to a mandatory distribution either because he has terminated and his account balance is between $1000 and $5000, or because the plan is terminating and the account must be distributed, then an automatic rollover IRA account can be established for the account, per IRS regulations.

What is the employer has another qualified plan, can the money be automatically rolled over by default to this plan, or must it only go to an IRA?

[My 2 cents]

Presumably, the plan administrator has established a default IRA provider (I know that if involuntary lump sums above $1,000 are payable under the plan, there must be a default IRA provider established under defined benefit plans, and I assume that this is either a defined benefit plan or the same rule applies to defined contribution plans).

You make the rollover to the default IRA provider if the participant cannot be located or won't respond. You only consider making a rollover elsewhere if the participant formally requests it. I don't think that you are allowed to just move the lump sum into another plan maintained by the employer.

[30Rock]

I do not interpret the regs to allow this either under the default provisions

Does anyone else have views?!