When an employee is terminated, it’s important to update their eligibility and account information in your J.P. Morgan employer portal. Depending on whether your plan has an active payroll integration, this process may differ. Here’s a guide on how to manage employee terminations in the J.P. Morgan system.
Terminating Employees: Unintegrated Plans
For plans without an active payroll integration, there are two ways to mark an employee as terminated:
- During the contribution flow - Add the termination date during the payroll contribution upload process in the J.P. Morgan employer portal. This can be done when entering the contribution data manually, or via a file upload.
- Add termination information through the “Employees” tab - You can directly enter an employee’s termination date into the “Employees” tab in your employer portal at any time. Once on the “Employees” page, click on the employee's name. Then, click Edit under their employment dates and add the termination date. You can find more information on this process here.
Terminating Employees: Integrated Plans
For plans with active payroll integration, an employee’s termination date must be sent through the payroll system to J.P. Morgan. Please add their date of termination to your payroll system. Upon the next payroll processing, J.P. Morgan will receive their date of termination and mark the employee as terminated/ineligible in your plan. Please note that this is not updated in real time, but it will be received upon the next payroll contributions being processed.
Note: You may add an employee’s date of termination directly into the J.P. Morgan employer portal at any time using the instructions outlined here. However, please note that this data must be entered into your payroll system as well to confirm that the changes you’ve made are not overridden by the data we receive from your payroll system upon the next payroll running.
What Happens Once an Employee Is Marked as “Terminated” in the J.P. Morgan Portal?
Once the termination date is added to the J.P. Morgan portal, the employee will be eligible to request a withdrawal or rollover distribution.
Note: The employee will not receive an email from J.P. Morgan notifying them of their options upon termination. They will need to initiate any distribution requests from their account.
If the employee’s account balance is below $7,000 and they don’t request a distribution, their funds will be forced out of the plan during the following quarter. Accounts with balances above $7,000 cannot be forced out and will remain in the plan. For more information on the forceout policy, please review and share this article with your employees.
Note: If you use a third-party administrator (TPA), please connect with them directly on forceouts.
If your employees need assistance with their account or taking a distribution following employment termination, they may contact a member of our team at everyday401k.help@vestwell.com.