distribution amounts under $1.00

[KoolLady4]

We have a number of small checks (approx 75) that are all under $200, many under $25 and about 10 under $1.00.

It seems as though the cost of distributing these under $1.00 checks is higher than the check itself. Does IRS have any guidance on whether these small amounts can just be forfeited?

Who would be thrilled to receive a check for $0.53?

[WDIK]

Take your pick from some of these prior discussions.

[E as in ERISA]

If you get audited by the IRS and they found that you didn't make distributions, they might get on the list. But they probably will only make you correct errors that are above a certain threshold (similar to EPCRS). If you get audited by the DOL, they might not have thresholds. But they probably would be less concerned if you did something with the money that benefited participants (as opposed to the sponsor or a vendor).