Qualified retirement plans that provide immediate cash-out distributions to a terminated participant if the vested benefit is “$5000 or less” must be amended to comply with Department of Labor (DOL) final regulations.
Cash-Out Distribution Plans Require Amendment
Qualified retirement plans that provide immediate cash-out distributions to a terminated participant if the vested benefit is "$5000 or less" must be amended to comply with Department of Labor (DOL) final regulations. The final regulations are effective for rollovers of mandatory distributions made on or after March 28, 2005. The final regulations provide a safe harbor for fiduciaries of tax-qualified pension plans that are required to roll over plan benefits into an individual retirement plan when a terminated employee fails to elect a distribution method.
By
Ruth Wimer And Alice KurtzThis premium content is locked for Accounting and Financial Planning for Law Firms subscribers only
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