Distribution

[pgold]

What do you do when terminated participant doesn't return election forms in 401K plan?

 

[CuseFan]

Depends on the terms of the plan, the size of the balance and the reason for the distribution.

[pgold]

If it is less than $5000, can you

1. transfer to an IRA, or

2. Send cash minus 20%

the reason for the distribution is the participant terminated employment.

[Mike Preston]

Repeat: terms of the plan. 

[Pam Shoup]

On 7/15/2019 at 2:22 PM, Mike Preston said:

Repeat: terms of the plan. 

Check to see if the plan allows for involuntary cash-outs and then read on from there and determine if the participant qualifies and  your plan's procedures.