SSA notified employer many employees were using invalid social security numbers; employees terminated. What is to be done with their 401(k) funds?

[Guest jusducki]

This is a Safe Harbor plan so virtually all terminated employees have an account balance....some also were making salary deferrals. We have no experience with this issue and don't know if they're entitled to their account balances and, if so, how is the reporting done? Thank you in advance.

[Harwood]

This discussion sheds more heat than light on the subject:

http://www.benefitslink.com/boards/index.p...opic=20082&st=0

[mbozek]

The participants are entitled to their account balances once they provide proof of identity and a valid ss#. The problem is how will the plan admin verify that someone who misrepresented himself as employee X has now given genuine proof that he is employee Y?

[Guest jusducki]

Thanks so much for referring me to the posts from a couple years ago - skimmed through them just now and appears to have been a 'hot' topic! Anxious to make time to really read them so I have an idea of how to handle this.