Editing 401(k) (section)

===Required distributions for some former employees===
A 401(k) plan may have a provision in its plan documents to close the account of former employees who have low account balances. Almost 90% of 401(k) plans have such a provision.<ref>Donhardt, Tracy. "[https://books.google.com/books?id=v86MDwAAQBAJ&pg=PP1]." ''Indianapolis Business Journal''. September 19, 2005.</ref> As of March 2005, a 401(k) plan may require the closing of a former employee's account if and only if the former employee's account has less than $1,000 of vested assets.

When a former employee's account is closed, the former employee can either roll over the funds to an [[individual retirement account]], roll over the funds to another 401(k) plan, or receive a cash distribution, less required income taxes and possibly a penalty for a cash withdrawal before the age of {{frac|59|1|2}}.