Guest Mindy Posted March 27, 2000 Share Posted March 27, 2000 We have a plan that terminated with a last day of 2/28/00. At 2/28/00 they had 1 check that was written but the participant has not cashed it. Can the 2/28/00 be the final filing date - i.e. accrue the distribution? Link to comment Share on other sites More sharing options...
BeckyMiller Posted March 27, 2000 Share Posted March 27, 2000 For what it is worth - I would say yes, you can treat it as terminated. In making this response, however, I am assuming that the check was issued pursuant to plan terms - any required signatures, notices, etc. are on file. Link to comment Share on other sites More sharing options...
Kirk Maldonado Posted March 27, 2000 Share Posted March 27, 2000 I agree with Becky Miller, assuming that the participant actually cashes the check. However, if the participant does not cash the check (i.e., the participant cannot be located), I'm not sure that you would get the same result. In such a situation, you would still have assets remaining in the plan, which would trigger the need to file another Form 5500 for the following year (or partial year). Kirk Maldonado Link to comment Share on other sites More sharing options...
Guest kurt johansen Posted February 16, 2001 Share Posted February 16, 2001 I ran into a similar situation with an uncashed check last year. There was no plan termination involved. Instead, the employee quit his job and requested a distribution. His wife consented even though they were apparently separated at that time. A few days later the employee shot and killed his wife's boyfriend and held her hostage at gunpoint for several hours. He is now serving a life term in prison. He has never cashed the check and we suspect that his brother may be holding it for him. The ex-wife got a divorce decree that gave her all of his benefits under the plan plus all of his social security benefits! I was asked to determine if we could recognize the divorce decree considering that we had already distributed a check to the participant. We were concerned that we had no right to cancel the check. I was unable to find anything that would suggest whether a distribution had occurred and whether we should cancel the check and make a distribution to the ex-wife. I would love to hear anybody's opinion. Kurt Link to comment Share on other sites More sharing options...
david rigby Posted February 17, 2001 Share Posted February 17, 2001 Is the participant "missing", or is the checked uncashed for some other reason (perhaps even death)? If the participant is missing, and this is a DB plan, I suggest using the PBGC Missing Participant program. http://www.pbgc.gov/forms/XAMISS.htm If this is a DC plan (without annuity options), you might wish to use the newly proposed technique of issuing the benefit to an IRA. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Guest carsca Posted July 26, 2001 Share Posted July 26, 2001 Pax, Could you please elaborate on this technique. I have a client with the same issue for a terminating plan and would like to be able to force the money out someway. In my case, however, the participant is not missing. Link to comment Share on other sites More sharing options...
david rigby Posted July 26, 2001 Share Posted July 26, 2001 Revenue Ruling 2000-36 states that a plan can be amended to define the default distribution as an IRA, under certain cricumstances. http://www.benefitslink.com/IRS/revrul2000-36.shtml I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
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