ombskid Posted November 8, 2012 Posted November 8, 2012 If a former participant has a small (under $200) balance, can the sponsor send them a check for the balance? This is after several requests to fill out distribution forms have been ignored.
ETA Consulting LLC Posted November 8, 2012 Posted November 8, 2012 Yes. There is no required withholding for this amount (when it is the only amount being distributed during the year). You weren't even required to provide the notification, since there is no required withholding. He can take the $200 check and roll it over. Good Luck! CPC, QPA, QKA, TGPC, ERPA
david rigby Posted November 8, 2012 Posted November 8, 2012 At the risk of the obvious, what does the plan say? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
ETA Consulting LLC Posted November 8, 2012 Posted November 8, 2012 At the risk of the obvious, what does the plan say? "Like". You know, that is the only answer. Despite what the law allows, you must follow the terms of the plan. Sometimes, in haste, we quickly answer based on understanding of law. The only correct answer is to follow the terms of the plan. Good Luck! CPC, QPA, QKA, TGPC, ERPA
ombskid Posted November 8, 2012 Author Posted November 8, 2012 Yes, always a good idea to check the document, which in this case calls for distribution of anything under $1000. Thanks all
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now