Two different cashout limits under plan - how apply?

[Guest TaxedToDeath]

Is it possible to have two different cashout limits under a plan? For example, a $5,000 cashout limit applicable to benefits accrued before 1/1/2012, and a $1,000 cashout limit applicable to benefits accrued after 12/31/2011? Is it permissible to bifurcate a participant's accrued benefit in this manner for this purpose? If so, how would this be applied in practice? Suppose a participant has an accrued benefit of $6,999, $6,000 of which was accrued before 1/1/2012 and $999 of which was accrued after 12/31/2011. Can the $999 attributable to the benefits accrued after 12/31/2011 be cashed out, even though the participant's total accrued benefit of $6,999 exceeds the cashout limit?

[david rigby]

Can the $999 attributable to the benefits accrued after 12/31/2011 be cashed out, even though the participant's total accrued benefit of $6,999 exceeds the cashout limit?

If you mean "involuntarily cashed out", the answer is no.

[Guest TaxedToDeath]

If you mean "involuntarily cashed out", the answer is no.

Thanks, David. By any chance would you have a citation for the applicable authority?

[ETA Consulting LLC]

If you mean "involuntarily cashed out", the answer is no.

Thanks, David. By any chance would you have a citation for the applicable authority?

IRC Section 411(a)(11)

Good Luck!