Effect of EPCRS and ability to automatic cashout terminated employees

[Guest benefitsnewbie]

Hi, does participating in EPCRS, and paying subsequent QNEC have any effect on ability to cash out the balance of a terminated employee, if even after the QNEC, the balance is under $1,000?

Thanks

[ETA Consulting LLC]

No. You should continue to follow the terms of the plan. The cashout provisions are reflected in the plan's terms.

Good Luck!

[BG5150]

But the 402(f) notice must be provided before they are cashed out. A new one must be given if they had a prior distribution more than 180 days before you do a subsequent distribution.