BenefitsLink logo
EmployeeBenefitsJobs logo

Search the News

Featured Jobs
Pension Sales Consultant
Executive Director
Client Experience Specialist
Director Client Services
401(k) Plan Consultant
Sr. Benefits Analyst
Technical Compliance Consultant - Retirement and Stock Programs
Search all jobs
Get the BenefitsLink app for iPhone and iPad LinkedIn

Jump to content


Rollover check issued to Plan Sponsor fbo payee, not the Plan fbo paye

  • Please log in to reply
2 replies to this topic

#1 R. Butler

R. Butler

    Registered User

  • Registered
  • 1,498 posts

Posted 20 December 2002 - 11:08 AM

Employee A is attempting to roll money from a prevoius employer into the ABC, Inc. Profit Sharing Plan. The rollover chek is made payable to ABC, Inc. fbo Employee A. I am inclined to suggest that ABC, Inc. have the check returned to previous employer's plan and have it reissued to to ABC, Inc. Profit Sharing Plan fbo Employee A. It bothers me that this check isn't made payable to the Plan.

Am I making too much out of this? Should the rollover be accepted as is?

#2 alanm


    Registered User

  • Registered
  • 174 posts

Posted 20 December 2002 - 01:57 PM

I think you will be ok if you endorse the check on the back and deposit it into the plan account. Funds will be transfered from the old plan account directly to the new plan account. I wouldn't have ABC Inc deposit the check into their operating account and then issue another check to the plan.

#3 hpaine


    Registered User

  • Registered
  • 41 posts

Posted 23 December 2002 - 05:21 PM

Why not have the prior company place a stop payment and reissue, especially if they were at fault.