No. of Recommendations: 0
Greetings, ScurvyDog, and welcome.

<<I have a 401k account that was supposed to become a
permanent account (company is forced to maintain account by federal law) at $3500.

A while back in the WSJ they were saying this would go up to
$5000. Is this true for accounts that pre-date the new law or will these accounts under the new min become un-permanent.

Also, does anyone no when this is supposed to happen. Any
details would be appreciated.>>

The Taxpayer Rekief Act recently signed into law raises that limit to $5,000 effective with plan years beginning after enactment. In most cases, that means in 1998 retirement plans may force a distribution to terminated partcipants if their
accumulated benefit under the plan is $5K or less. Those forced to take a distribution may transfer those amounts to an IRA to delay taxation until retirement. The law is silent on "grandfathering," so my educated guess is if your balance is under $5K when your old plan's new plan year starts (probably after 1/1/98), then you will receive a forced distribution.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.