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My company recently processed a 401k distribution incorrectly.

We processed it as a cash distribution when it clearly should have been a rollover.

The check went out wrong. A stop-pay was placed on the check and it was later reissued correctly. The whole process took about 10-15 days.

The ex-employee is now complaining that we should make up lost interest for the 10-15 days it took for them to get a corrected check. The distribution itself only totaled around $5,500, so we aren't talking about alot of money.

Are we obligated to pay them any additional interest? ...is there are rule I can cite to this person to get them off my back?

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