A term that refers to when the balance of a participant's retirement account is below the qualified amount, and the balance is distributed without the participant or beneficiary's written consent. This occurs when the participant dies or stops working for the sponsoring employer.
Related information about involuntary cash-out:
- Involuntary Cash-Out Definition | Investopedia
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 ...
- Business Owners: Rules For Qualified Retirement Plans
Apr 25, 2005 ... In 2004, the U.S. Economic Growth and Tax Relief Reconciliation Act of 2001 ( EGTRRA) changed the involuntary cash-out rules, requiring plan ...
- Involuntary Cash-Out: Definition from Answers.com
To completely liquidate an asset . Example: Farmer Brown would not consider taking back a mortgage as part of the price of the land he sold.
- Involuntary cash-out | Retirement Dictionary
Mar 20, 2009 ... Definition. An involuntary distribution of a participant's balance or $5,000 or less, under a qualified plan, 403(b) or 457(b) plan, which occurs ...
- Publication 560 (2011), Retirement Plans for Small Business
Involuntary cash-out of benefits not more than dollar limit. A plan may provide for the immediate distribution of the participant's benefit under the plan if the ...
- IRS Issues Cash-Out and Consent Rules For Defined ... - Prudential
involuntary cash-out threshold from $3,500 to $5,000 for plan years beginning after August 5,. 1997. ... appropriate involuntary cash-out limit for their plans.
- Rev. Rul. 2000-36
involuntary cash-out from Plan A greater than $1,000 but less than or equal to. $5,000 will be a direct rollover (an eligi- ble rollover distribution that is paid di- ...
- IRS Releases Guidance and Sample Amendment ... - SunGard Relius
Jan 4, 2005 ... We are contacting the IRS to determine the timing for adopting an amendment to eliminate or suspend involuntary cash-out distributions.