1997 Excess Contribution Refunds

[Guest AP]

Checks were cut prior to 3/15/98 for the 1997 plan year for excess contributions and 1099's were issued timely. However, the checks were never cashed by the participant and the participant can not find them now. What are the implications? Any advise will be appreciated.

[Guest ATaylor]

I would think the plan would be ok, since it made the corrections timely. There is no control over what the individual did. At this point I would think that a stop payment and reissue of the check would be appropriate. Of course this doesn't negate the original distribution or reporting on the 1099R, so if the individual has not already included this on their 1997 tax return, that would be an issue for them, and they would need to amend their return for 1997.