Very Small - Under $10 - Balances

[ljr]

Has anyone seen something definitive on how an employer can clear very small account balances from former participants' accounts? Is there anything on de minimis amounts for which checks don't need to be issued and the plan can just forfeit them? We have old unpaid checks in amounts less than $1 we'd like to just cancel rather than going to the expense of reissue only to have the reissued check end up uncashed too. I'm wondering if these checks should even have been issued in the first place, but on the other hand the participants were due the money even if it was only 78 cents.

What are others doing about this problem?

Thanks for any ideas or information you can offer.

[Fredman]

I don't know of any IRS or DOL de minimus rules regarding distributions.

From your details, I gather that you need to payout (sounds like a second payout) for lost participants. If so, do a search of these boards for "lost participants".

Wait a sec, how about if I help you out. Click below to search the boards for lost participants. I think you'll find plenty of threads addressing similar situations.

http://www.benefitslink.com/boards/index.p...ost+participant

[ljr]

Thanks!! That's what I figured about the "rules."