EGTRRA amended 401(a)(31)(B)of the IRC to require that mandatory distributions of more than $1,000 from a plan qualified under 401(a) be paid in a direct rollover to an individual retirement plan or an individual retirement annuity if the participant does not make an affirmative election to have the amount paid in a direct rollover to an eligible retirement plan or to receive the distributions directly. Both the IRS and DOL issued guidance with respect to this issue. This document will review some of the considerations which must be addressed in responding to this issue.
Note: This material is for the sole purpose of providing general information and does not under any circumstances constitute legal advice. You should seek the advice of counsel when applying the requirements to your plans.
Items covered in this download include:
- Plan Sponsor
- Action Items
- IRS Notice 2005-5
- Operational Compliance
- Plan Amendments
- Participant Communication
- Impact of Rollover Accounts in the Plan
- DOL Safe Harbor