In accordance with Internal Revenue Code § 411(a)-11, B4B acts as an ERISA 3(16) administrative fiduciary when processing automatic rollover distributions of eligible participant accounts (force-outs) to individual retirement accounts at Inspira Financial Trust Company (Inspira).
A 401(k) force-out allows a plan sponsor to remove a former employee’s assets from the retirement plan if their balance is below a set threshold (typically $5,000, but this may vary up to $7000 because of SECURE ACT 2.0 changes, based on your plan document). When a force-out occurs, the funds are transferred into an IRA in the former employee’s name at Inspira, with processing taking place in the 4th quarter of the year.
Whether a plan includes force-outs and the applicable balance limit is outlined in the Summary Plan Description (SPD) and related plan documents. This feature is available for Pro or Flagship plans and requires a plan amendment to enable or remove.
Former employees with questions about their force-out IRA can contact Inspira Financial’s Client Service Team at 877-682-4727 (Monday - Friday, 7:00 AM - 6:00 PM CT) or via email at arp@mtrustcompany.com.
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