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Mandatory Cash-Outs: Limits, Notices and Timing
Newfront 
[Guidance Overview] Feb. 13, 2026 "Mandatory cash-out distributions may clear small account balances from the company's 401(k) plan; however, forced cash-outs can also create risk, leakage, and unhappy former employees. This post breaks down the increased $7,000 cash-out limit under SECURE Act 2.0, default safe harbor rollover IRAs, and how auto portability works as an enhancement to the mandatory cash-outs so you can simplify administration while protecting participant outcomes." MORE >> |
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