Guest enelson Posted January 30, 2003 Posted January 30, 2003 Does anyone have any ideas regarding what to do with uncashed distribution checks? Evidently, the participants have received the checks; however, they have failed to cash them, perhaps due to the checks' small amounts. What, if anything, can the plan administrator do to get these account balances off the books? Thanks.
david rigby Posted January 30, 2003 Posted January 30, 2003 If you have a phone number, call to remind them that the distribution has been reported to the IRS and the recipient will have a tax liability even if the check has not been cashed. 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.
Guest BKH Posted January 31, 2003 Posted January 31, 2003 I believe with a qualified retirement plan, the plan document can provide that if a check is not cashed by a certain time period, that the amount i s forfeited, however, if the participant ever comes in and makes a claim for the money, the plan has to give it to him or her. There is an issue whether a state's escheat law will apply and whether it is preempted by ERISA.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now