Nassau Posted July 18, 2013 Posted July 18, 2013 Can someone provide me with the Regulations/Cite that allows plan sponsors to cashout terminated participants balances that are less than $1,000? Also, is there a requirement by either the IRS or DOL relating to the under $1,000 cash out process? Please provide the regulation or Code. Thanks.
ETA Consulting LLC Posted July 18, 2013 Posted July 18, 2013 You know, the best approach is to read the document for that plan. Everything this is "allowed" by the Code isn't always included in the plan's written terms. Also, 99.9997% of the time, if it is written within the plan's terms, it is allowed in the Regulations. I'd start with the reading the plan. I "think" the section of the code is 411(a)(11), but not sure without additional research. Good Luck! CPC, QPA, QKA, TGPC, ERPA
masteff Posted July 18, 2013 Posted July 18, 2013 Notice 2005-05 which discusses automatic rollovers provides sufficient crossreferences for you to find the exact provisions. http://www.irs.gov/pub/irs-drop/n-05-05.pdf ETA Consulting LLC 1 Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now