How to account for terminated employee balances, force-outs, etc.
As outlined in your contract, we rely on you for data about your employees.
Please update your census immediately upon the termination or exit of an employee.
In general, if a terminated employee's vested balance is over $7,000 and they choose not to roll out funds, the account will remain active and still be billed accordingly.
If the terminated employee's vested balance is at or under $7,000, their account balances will be forced out quarterly.
If the terminated employee's vested balance is below certain amounts and the cost of fees and withholdings to distribute the funds outweigh the account balance, these accounts are zeroed out.
You are obligated to continue to pay participant fees until the participant's account is at a zero balance.