Automatic rollover of mandatory cash out distributions. Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), a plan (including 403(b), governmental 457(b), and non-electing church plans) that provides for a mandatory cash out (without participant consent) distribution of a nonforfeitable account balance that does not exceed $5,000 must, as a condition of qualified status, use a direct rollover as the default option for involuntary distributions that exceed $1,000. Thus, employers will no longer be permitted to cash-out a participant whose account balance is under $5,001 but over $1,000. These regulations will apply to the rollovers of mandatory distributions made on or after March 28, 2005. Plans who provide for cash-out distributions must be amended to reflect the limit change by the end of the Plan Year containing March 28, 2005.