Automatic Rollovers below $1,000

[12AX7]

We've took over a plan earlier this year, and recently the trust received a wire transfer of about $1,400 representing accounts for "lost participants" where the disbursement checks were not cashed or deposited. The new CFO does not know to what extent efforts were made to locate these participants. I was thinking of just amending the plan to allow for the autorollover of all amounts not exceeding $5,000. I don't think this is a cutback issue or any issue. I would perhaps suggest that the client send out a letter to each of these individuals using addresses mined from a professional locater service.

This is a lot of work for just a few participants, so we just want to deal with it as quickly as possible.

[PFranckowiak]

You might want to contact one of the Rollover Services and let them do the looking. If you amend the plan to allow for forced distributions under $5,000, if you cannot find them to have them fill out paperwork to get a check to- I think you could force them into an IRA. Most of the Rollover Services have better methods for looking for people and send out the paperwork and if they don't respond, will open an IRA for them.

P