Lookback rule (for involuntary cash-out distributions of less than $5,

[Dave Baker]

Final regs have adopted the IRS' 1998 proposal to eliminate the "lookback rule" (generally effective October 17, 2000) which has prevented involuntary cashouts in some circumstances (e.g., where account value once was over the $5,000 threshhold but has dropped to less than $5,000 due to investment losses)

http://www.benefitslink.com/taxregs/cashou...out-final.shtml