Force out Payments

[52626]

ok, need some help, I just read an article titled Inactive 401(k) accounts need greater protections.

The article states the following: current law also allows employers to force out account iwth more than $5,000 . For example, a plan can force out an account balance of $20,000 if less than $5,000 is attributable to contributions from the employer.

I am asusming what the author is referring to is if the account balance is made up of $16,000 Rollover money and $4,000 employee/employer contributions, the plan could disregard the rollover account when determining if the balance can forced out.

do you agree???

Thanks

[Lou S.]

Yes. It sounds like a poorly worded article.

[BG5150]

The plan document will tell you if rollovers are disregarded for cashouts.