• The Automatic Rollover Rules
  • February 5, 2005 | Authors: John M. Collins; Jesse J. Gelsomini; Charles F. Plenge; Susan A. Wetzel; Eric Winwood
  • Law Firms: Haynes and Boone, LLP - Dallas Office; Haynes and Boone, LLP - Houston Office ; Haynes and Boone, LLP - Dallas Office
  • The new automatic rollover rules for tax-qualified retirement plans, effective March 28, 2005, require that, absent a plan participant's affirmative election, certain mandatory cash-out distributions of more than $1,000 but not greater than $5,000 (ignoring the value of a participant's rollover contributions made to the plan) must be directly transferred to an individual retirement account or annuity ("IRA") established by the plan on the participant's behalf. Church and governmental plans will not be subject to these rules until 2006, or later.