The Internal Revenue Service has just issued guidance on a rule that has been on the books since 2001 to prevent employers from liquidating 401(k) rollover accounts with values between $1,000 and $5,000.

Heretofore, when an employee had left a job with a 401(k) plan with $5,000 or less, the employer had the right to force the worker to liquidate the account, which many were all to happy to do because of the account's meager size.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.