Employer Contribution after balance distributed

[KTB]

We have a 401(k) Profit Sharing Plan that makes an employer contribution well after the end of the plan year. During the 'waiting' time, we have had a few people take distributions from the plan. This gave them a $0 balance, but when the employer contribution came in, they now have a very small balance in the plan. How does everyone handle that? Can you force it, should you try to contact them before using the same distribution method that they chose before? Thanks!!

[401king]

We have a 401(k) Profit Sharing Plan that makes an employer contribution well after the end of the plan year. During the 'waiting' time, we have had a few people take distributions from the plan. This gave them a $0 balance, but when the employer contribution came in, they now have a very small balance in the plan. How does everyone handle that? Can you force it, should you try to contact them before using the same distribution method that they chose before? Thanks!!

If the amount is less than the distribution fee, we just explain to the participant that it will be taken as a fee, but generally create a forfeiture with it instead of going through the whole distribution process (for $1.32).

Our distribution forms read that if the amount is greater than the distribution fee, we will immediately process the distribution (net of fee) in the same manner that the previous check was issued.

[Bird]

If it's within 180 days of receipt of the tax notice, then I think it's ok to go with the original election, and we do that. If it's over 180 days and a small* amount, we'll do it the same thing anyway. If it's a large* amount, we'll re-do the forms.

*Definitions might depend on how the day is going...

[Blinky the 3-eyed Fish]

If it's past 180 days and the balance is over $200, there is no statutory right to just pay them out. A new set of elections are needed. If the balance is under $200 (and the prior distribution was in a previous calendar year), then I see no problem just paying them out again. Same for if within 180 days.

[KTB]

Thank you everyone for your input and thoughts! I appreciate it.