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Changes to the low-balance distribution limits under SECURE 2.0 will make it easier for plan sponsors to force more participants out of their plan when they leave the company, particularly if they determine small balances are too expensive to maintain.
Under current rules, retirement plans can force participants out if they have a vested account balance of $5,000 or less. The SECURE 2.0 Act increases that limit to $7,000 for distributions starting in 2024.
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