Rollover check issued to Plan Sponsor fbo payee, not the Plan fbo paye

[R. Butler]

Employee A is attempting to roll money from a prevoius employer into the ABC, Inc. Profit Sharing Plan. The rollover chek is made payable to ABC, Inc. fbo Employee A. I am inclined to suggest that ABC, Inc. have the check returned to previous employer's plan and have it reissued to to ABC, Inc. Profit Sharing Plan fbo Employee A. It bothers me that this check isn't made payable to the Plan.

Am I making too much out of this? Should the rollover be accepted as is?

[alanm]

I think you will be ok if you endorse the check on the back and deposit it into the plan account. Funds will be transfered from the old plan account directly to the new plan account. I wouldn't have ABC Inc deposit the check into their operating account and then issue another check to the plan.

[Guest hpaine]

Why not have the prior company place a stop payment and reissue, especially if they were at fault.