401(k) Plans Need The Involuntary Cash-Out Rule

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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They always say that it’s hard to say goodbye, I never had that issue as a former employee. I was never sentimental to former employers, but other former employees may think differently. As a 401(k) plan sponsor, you certainly want former employees to say goodbye and take their 401(k) account balance with them. One way you can eliminate the balances of former employees is the use of the involuntary cash-out provision, which is something that your plan has and should exercise.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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