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$5,000 Involuntary Cash-out Limit


Guest John Sample

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Guest John Sample
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When can a plan review account balances to determine involuntary cash-outs for balances under $5,000?

A large company is constantly looking to payout terminated employees who leave with account balances under $5,000. Can a plan that is valued daily, review balances daily and payout when balances go below $5,000 due to investment loss?

Thank you.

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