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Forced Transfers


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I have a plan with a missing participant and need to get the funds out of the plan. (Acct balance between !000-5000). I'm having trouble finding a custodian or financial platform that will accept a force out without the participant's signature. We have followed the IRS guidelines in the field book for locating lost participants. The platform that currently holds the plan does not accept them. Does anyone know of one that will accept this forced transfer?

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Does the plan provide for auto rollover of cashed out vested balances of $1,000 - $5,000? Your description sounds like you don't have an automatic rollover IRA provider for the plan. With our VS documents, the missing participant provisions only apply to those under the cashout limit and for someone with a $1,000 - $5,000 vested balance, the automatic rollover provision (if used) applies first and prevents you from using the missing participant provisions. Missing participant provisions typically forfeit vested balances after a due diligence search.

If you have an auto-rollover IRA provider who requires a participant signature before accepting the funds, you need to find a different IRA provider. We use Millennium.

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Yeah, what Kevin said.

BTW, although probably not significant, the word "transfer" is technically incorrect. A better choice is "direct rollover" or "automatic rollover". (Not to be picky, but sometimes the correct terminology is important.)

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.

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