I always say that the real reason I never hired employees for my law firm is that I was once an employee too. That means that no matter what my employer could do, there would probably be something I still would complain about. One of the lurking dangers in your 401(k) plan is former employees who still have account balances in your plan and my suggestion to you that as a 401(k) plan sponsor, you should minimize your liability exposure by trying to get these former participants to roll out their account balance and cash them out if they are under the cash-out provision.
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