Florence

Wondering if others have run into this situation...have a small 401(k) Plan that terminated. Checks were issued to all participants in 2021. As of 12/31/2021, several people did not cash there checks, so assets remain in the Plan. The Trust therefore does have assets remaining as of 12/31/21. Thoughts on whether 2021 should be the final Form 5500, or doing an additional 5500 for 2022.

The other key factor here is what type of tax form they are going to give to you at the end of the year. For a retirement plan a 1099R tax form is issued. If the company wrote you a check, they may be planning to issue a W2 or a 1099-Misc/NEC. The correct way is a 1099R. If they give you a W2 or 1099misc, the amount is not eligible to rollover to an IRA and you would not be subject to 10% tax.

I am going through the same situation currently. We have a terminated Plan and we did the final 5500 in June 2018, final payout 5/25/2018. 1099Rs were issued to all participants end of 2018 for their distributions. In February 2019, additional dividends were posted to several participants' accounts. Subsequently rolled into their IRAs. I have been contemplating the impact on the final 5500, as well as whether 1099Rs need to be issued for 2019 for these (very small) residual amounts. ANY THOUGHTS...

Thank you for your responses. We did find all of the documentation in our archived files and sent a letter to the Participant.

We filed an 8955-SSA for 2010 reporting 1 participant that was paid out (code D). We were just notified by the Participant that he was informed by SSA that he had benefits due him. Debating whether we should send a letter to SSA with a copy of the return previously filed or add said participant to the next SSA. Has anyone run into this before and/or what are your thoughts?

I would be glad to assist. I'm located on east coast in Ohio. 4405724950

Actually, he should not have been able to defer his entire $24,000 of compensation, as fica is supposed to be taken out of compensation before deferrals.

I would be interested in talking to you further. We are a non producing TPA. Please call Florence at (440) 572-4950.