Automatic Distributions - finding old participants

[Guest Karen Renee]

We have cleaned up our plan, processing automatic distributions for those participants with less than $5,000 in the plan. The only problem is that some of them were terminated 4 years ago and have not given us a forwarding address so all of their statements and money are coming back to us. I've tried people searches on the internet with no luck. Is there a way to find them? Are we responsible for finding them? What happens if we can't find them? Should the money be put back in the plan?

[Dan]

The IRS and Social Security Administration sponsor lost participant programs. There is a article by Amy Cavanaugh entitled "Avoiding and Locating Lost Participants" in The Pension Acutary for January-February 1999. I can fax a copy if you would like.

[Guest Robert Collins]

See the CBANARER question titled Missing Participant in the "Retirement Plans in General" Message Board. This topic was started on 1/27/99. I think I found the answer to my question - Regulation 1.411(a)-4(B)(6).

[Guest Robert Collins]

I think that the forced cash out can only be used for participants who have terminated within the last two years. If you have participants that have been gone longer than this, the regs prohibit a forced cash out.

[Guest Crystal]

We have used the IRS' Locater Service with some luck.

[Guest Karen Renee]

Crystal,

Can you give me information on how to use the IRS locator service?

Thanks.

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[Guest Crystal]

Karen - e-mail me your fax number or address and I'll send you the instructions. I'm at rpsc@mindspring.com.

[david rigby]

Also, see Q&A posted on What's New page 6/22/99, specifically related to a terminating DC plan.