Ahuntingus Posted November 24, 2020 Share Posted November 24, 2020 we have a client who has passed away earlier this year.. The business is shutdown and we are looking to terminate the 401k plan.. there are 6 employees who are requesting distributions.. there is no other authorized signer or trustee on the plan and the wife who co-owned the business is non-responsive.. first and foremost we'd like to get the employees their dollars.. and then finish up the plan termination.. thoughts on best way to proceed here? Link to comment Share on other sites More sharing options...
Bill Presson Posted November 24, 2020 Share Posted November 24, 2020 Frankly, it's not your responsibility unless you're a fiduciary. You should send a certified, signature required letter to the wife explaining what needs to happen. Copy their attorney if you know who it is. Then, if she doesn't respond, you're done. Luke Bailey 1 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Luke Bailey Posted November 26, 2020 Share Posted November 26, 2020 One of the employees should read his/her SPD that says at the back that if they have an issue that employer does not resolve they can contact DOL and provides contact info. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
Appleby Posted November 29, 2020 Share Posted November 29, 2020 On 11/24/2020 at 1:18 PM, Ahuntingus said: we have a client who has passed away earlier this year.. The business is shutdown and we are looking to terminate the 401k plan.. there are 6 employees who are requesting distributions.. there is no other authorized signer or trustee on the plan and the wife who co-owned the business is non-responsive.. first and foremost we'd like to get the employees their dollars.. and then finish up the plan termination.. thoughts on best way to proceed here? You did not state your relationship to the plan. This might help (FAQs About The Abandoned Plan Program - DOL). https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/abandoned-plan-program.pdf Also https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/abandoned-individual-account-plan It is possible that the financial institution holding assets for an abandoned plan will refuse to serve as QTA. That would be a nightmare scenario, as getting the DOL involved might not help, and it would then be necessary to have a court assign trusteeship to a party. Good luck Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
Appleby Posted November 29, 2020 Share Posted November 29, 2020 I forgot to add- if you run into a roadblock, I recommend Penchecks https://www.penchecks.com/our-solutions/trust-resolution/uncashed-checks-qta-service/ . Ask for Chip Davis and/or Steve Wagoner. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
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