We have recently terminated a retirement plan for a client and received IRS approval. Three "jerks" will not submit their distribution authorizations, arguing that since they have over $5,000 the employer cannot force them to take a distrbution or roll the account over. (I don't know their agenda.) Can the employer use the standard force out procedures for balances under $5,000 in an ongoing plan?

If the plan is a dc plan, does not have an annuity option, and the sponsor (or any member of its controlled group) does not maintain a qualified plan, you can force the distribution. See 1.411(a)-11(e)(1). If there is another plan, you can transfer the pparticipant's account balance to that other plan.

If the plan has an annuity option and is a dc plan, just buy a deferred anuity for the "jerks" from an insurance company. I'm sure the participant's will just love all the fees the insurer will charge

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If you have a profit sharing plan without an annuity option but you do have other types of distribution options, you may also want to look at 1.411(d)-4 Q&A 2(B)(2)(vi) where you can eliminate those other distribution options and force a lump sum (provide the employer maintains no other plans).

I have had a similar problem with a plan. However, when I informed the participants that their individual accounts would be charged for the plan administrative fees and governmental reporting fees for continuing the plan they sure returned the distribution forms in a hurry.