Automatic Rollover

A rollover of a participant's qualified-plan balance to an IRA without the participant's authorization.

This usually occurs for involuntary cash-outs of balances between $1,000 to $5,000. The plan administrator is responsible for establishing the IRA on the participant's behalf.


Changes In Cash-Out Rules For Qualified Plans - Business owners need to take note of how they handle qualified-plan distributions to former employees.

Moving Your Plan Assets? - You may want to do so if you are changing jobs or retiring, but make sure you know the rules and your options.

Rollovers Of After-Tax Assets May Change The Landscape Of Your IRA - Consolidating retirement assets? Make sure you account for pre-tax and after-tax assets separately.
Related Terms

401(k)

Involuntary Cash-Out

Qualified Retirement Plan

Rollover

Traditional IRA

Vesting

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