Cash-out Issues on Final 401(k) Rules

The Internal Revenue Service supplemented its Final 401(k) Rules issued last week,
" providing guidance needed for plans to cash-out participants or to transfer amounts to another plan when the participant terminates."

IRS Notice 2005-5 will be included in Bulletin 2005-3 to be issued on Jan. 18th., but background and copies of the notice were found on TaxNewsFlash.

Information on the Final Rules were discussed here last week, and can be consulted for more information.