Missing Participant?

[Jilliandiz]

There is terminated participant in a 401K plan with a vested balance of about $4,500....we know where she lives, have called numerous of times and sent numerous certified letters to her, they all come back to us saying she is not claiming them. The problem is she stole money from her employer back in the day so she avoids all means of coming in contact with us the TPA and them the ex-employer. Can I distribute her account balance to unclaimed funds since we know she is in fact not accepting anything from us, and we know where she is.

Also, if I can file her account to unclaimed funds, how would I do that?

Thanks

[Guest 401der]

Under the new automatic rollover rules, you probably need to open an IRA for her and to a direct rollover into the IRA, ask the IRA provider to notify her of the account, and be done with it.

[david rigby]

If the plan is like most (unless the plan was amended to lower the mandatory payout limit), you must distribute the benefit, first by offering the choice of a cash payment or a rollover, and then (when the participant does not respond) do the rollover.