Distribution Fee Question

[Guest Solbesado]

I was interested in knowing what others may do when they have a situation where a terminated participants vested account balance is less than the distribution fee you would charge to process it- do you forfeit it? Interested in what the solution may be to this dilemma. Thank you for any assistance.

[401king]

I was interested in knowing what others may do when they have a situation where a terminated participants vested account balance is less than the distribution fee you would charge to process it- do you forfeit it? Interested in what the solution may be to this dilemma. Thank you for any assistance.

We used to just forfeit it, but then realized how much we were losing each year in revenue by doing so. We now process the distribution entirely as a fee.

[GMK]

Here's a previous discussion:

http://benefitslink.com/boards/index.php?showtopic=40521