Can my account be forced out of the plan after I'm no longer working for the plan sponsor?
It depends on your account balance. But generally, a plan may allow for involuntary distributions (aka force-out distributions).
- Balances Less than $1,000
- Your account balance can be forced out of the plan as a cash distribution or rolled over to an IRA without notice
- Balances $1,000 - $5,000
- Your account balance can be forced out of the plan as a rollover to an IRA but requires notice
- Balances $5,000 or more
- Your account balance cannot be forced out of the plan unless the plan is terminating. In these circumstances, most plan sponsors will elect to roll your balance to an IRA on your behalf if you take no action before the plan is closed.
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