I have ADP refunds that are due, but the participants have already distributed their account balances during 2002. I know that I need to forward notices to these participants that the refund amount is not eligible for rollover, but do I need to go back and issue corrected 1099-Rs, one with the refund amount and a corrected one for the original distribution less the refund? Or is just the notice to the participant enough?

JennNew

You should reissue the 1099R

See reg 1.401(k)-1(f)(7) example 1

I don't believe its required, but if the plan made a direct rollover on behalf of the participant, I would send a copy of the notice to the rollover institution as well as to the participant since you have that information readily available.