Required Automatic Rollovers of Small Benefit Cash-Outs

Kelley Drye’s Employee Benefits and Executive Compensation Practice Group has prepared a client advisory regarding new rules contained in legislation and Department of Labor pronouncements which will impact all employers who have qualified plans, such as pension, profit sharing or 401(k) plans, by imposing requirements on small benefit cash-out procedures. The requirements will necessitate employers to either change their plans, or directly negotiate arrangements with commercial IRA vendors to hold these cash-outs.