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Guest Chris May
Posted

What is the procedure to involuntary distributions of lost participants?

What about plan terminations, where the participant is missing with a balance greater than $5,000?

Thank you

Guest Jennifer Reid
Posted

The plan document should outline these procedures.

Posted

There have been numerous threads on how to dispose of account balances of missing participants. Several methods are available once it is determined that the part. cannot be located through SS or a private locator service including forfeiting the balance and distributing it among remaining participants and 100% withholding to the IRS. DB plans are required to transfer the benefits to the PBGC.

mjb

Posted

In case you are not aware, you can look for those other discussion threads using the Search feature.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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