Publications

Automatic Rollovers: DOL Proposes Safe Harbor
03/23/2004

As part of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), qualified pension plans that include cash-out rules for benefits of $5,000 or less must provide for automatic rollover, once regulations have been issued. Plan sponsors have been waiting for the rules. The DOL has taken the first step with its proposed regulations on a safe harbor for fiduciary responsibility. If adopted soon, plans could be required to implement automatic rollovers by late 2004 or early 2005.