| Involuntary Cash-Out | |
 Distributing the balance of a participant's retirement account under a qualified plan without the written consent of the participant, the participant's spouse or beneficiary. |
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 Involuntary cash-out usually occurs if the participant’s balance is no more than $5,000 and he or she is either no longer employed by the employer sponsoring the qualified plan, or has died. Effective Mar 28, 2005, a qualified plan must ensure either that cash-out balances between $1,000 and $5,000 are rolled to a Traditional IRA (by means of an automatic rollover), or that cash-outs will not occur if the participant’s balance is more than $1,000. |
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 Changes In Cash-Out Rules For Qualified Plans - Business owners need to take note of how they handle qualified-plan distributions to former employees. Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it. |
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