Time Limit for Plan Participant Distribution

[Guest Mark Manning]

Does anyone know of a regulation/guidance stipulating time limits for an administrator to make a distribution from a qualified plan once a plan participant submits proper paperwork for distribution?

Thank You

[Dave Baker]

In some cases the forms signed by the participant go "stale" in about 90 days, meaning the plan is supposed to get another set of forms signed before cutting the check.

As for deadlines, though, usually there aren't any under the terms of the plan. Sometimes a plan's provisions will credit the participant with interest if more than a certain number of days have gone by since the end of the most recently ended year.

I guess ERISA's fiduciary duties would impose a requirement on the plan administrator to get moving as soon as administratively practical, but enforcing those duties is another matter (federal lawsuit, damages issue, etc.).

And isn't there a rule in the tax code from olden days, having to do with participants who attain normal retirement age? Something about having to get the funds flowing no later than 60 days after the end of the plan year in which NRA occurs, I think.

[Hoard1]

This isn't about paper work but there is a 210 day requirment after the end of the Plan year in which the Participant terminates to provide them with a statement of their vested benefit.