10/21/2004: DOL Final Regulation Requires Amendment to Automatic Cash-Out Provisions (McDermott Will & Emery)

Excerpt: Mandatory distributions from all tax-qualified retirement plans covered under Title I of ERISA are subject to the new regulation, including stock bonus, pension and 401(k) plans. Plans that provide for the automatic cash-out of distributions between $1,000 and $5,000 are subject to the new regulation, although the safe harbor may also be extended to amounts less than $1,000.