Fielding Mellish

A 401(k) plan allows for plan loans. A participant defaults on the loan (fails to make the required payments), so the loan is treated as a deemed distribution. Why does the financial statement continue to carry the deemed distribution as an "asset"?

I know that, before we send in our determination letter application, we are to provide notice to interested parties no less than 10 and no more than 24 days before we send in the application. I know the attorney and administrator who worked on the plan before simply posted the notice at the union hall. Reading Rev. Proc. 2009-6, I believe that we actually have to send out the notice to the participants, not simply post it at the hall. Does anyone have thoughts confirming my belief or proof that simply posting it at the union hall would suffice? Thank you.

A participant in a Multi-employer H&W Plan got divorced. Under the terms of the SPD, he was to notify the Plan immediately about this event. He did not do so. The Plan did not find out (and had no way to find out) that he was divorced. His ex-wife subsequently incurred medical bills which were submitted to the Plan for payment. Still believing that the ex-wife was the participant's beneficiary (as his spouse), the Plan made those payments. It was not until three years later that the Plan found out about the divorce. The Plan would like to bring suit against the participant for the money it paid out due to his failure to notify (as required by the SPD). A couple questions: 1) What basis does a Plan have to pursue such an action against a participant; and 2) Should the action be brought in federal or state court? I have done research on the issue and have come up empty-handed. Just wondering if anyone else has run into this situation and how they addressed it. Thanks a lot.