Unclaimed Property

[Guest caseyb]

Hi, I am in the process of closing out a plan that now has two ppts. One of them cannot be found. I've done my due diligence with search firms and the SSA letter forwarding service. I have the form for the state of Ohio's unclaimed property dept.

My question is: do I submit the gross amount of the account or have Fed withholding taken? Either way he won't receive the 1099-R unless he happends to come forward later this year, which is unlikely. If he ever claims the money from the state, he'll need to remember to include this on his tax return as the state isn't going to issue a 1099-R.

Thanks!

[Nate X]

Before moving the money to the State, you should first try to find IRA provider who will hold the balance as required by DOL's Field Assistance Bulletin 2004-02.

I've used a provider called PenChecks before:

www.penchecks.com

If you do move the money to the state, then the mandatory federal withholding applies.

[Guest caseyb]

Thanks. I forgot to mention the balance is only $900, so the plan's current recordkeeper won't allow an auto balance rollover. Lots of work for one ppt!