ErisaGeek Posted November 2, 2004 Posted November 2, 2004 What do you do if the distribution fee is more than the account balance of the participant? Can you still collect the distribution fee and not make any payment to the participant? I would think that would be discriminatory. If you did collect whatever distribution fee you could get out of the participant does that mean the participant does not get a 1099 since the person never got any money? Please share your thoughts.
Archimage Posted November 2, 2004 Posted November 2, 2004 At a recent ASPPA webcast they discussed this. It was said that a 1099 would not be needed in this case. If the fee was higher than the balance, the participant would not get anything and they recommended billing the employer for the difference. You can probably hear the recorded webcast if you order from ASPPA. I recommend it for your situation. I think you would get a lot out of it.
ErisaGeek Posted November 2, 2004 Author Posted November 2, 2004 Thank you Archimage. I will follow up with ASPPA.
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