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Litigation Proceeds for Terminated 401k Plans

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We have received some litigation proceeds for old 401k plans that have terminated. The businesses that sponsored the plans have closed. For one payment, we can locate the owner of the former business and for the second, we cannot locate the owner of the business.

We are trying to find guidance on what to do with these litigation proceeds. Who should they be sent to? If they are supposed to be assets of the plan, what is commonly done for plans that no longer exist? We are only talking about a payment of less than $50 in both cases. Thanks!

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Not sure what you mean when you say "we have received." Have you received it in a way that makes you a plan fiduciary (ignoring for the moment the fact that the plans have terminated)? You may wish to look at the DOL guidance from 10 or so years ago on what I believe were the mutual fund market-timing settlements. As a practical matter, however, for less than $50 per plan the best approach may be to just sit on the checks and do nothing unless and until more checks come in for the same plans in which case it may become a more serious issue for you.

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