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Posted

I am working on a 401k plan with several missing participants. I have not tried locator services yet, but I made a note of the private options mentioned in today's previous topic.

Getting to my question...the document says that account balances over $1,000 can't be forfeited until age 65. Does state law ever trump the document? Otherwise, when does turning money over to the state come into play...only if the plan is terminating?

Posted

Turning money over to the state should be considered as a last resort when the plan is terminating and the employer is dissolving and all reasonable efforts have been made both to locate the participant and establish an IRA for the participant..

Posted

^ and these days, unless you cannot come up with a valid SSN for someone, I see no reason why you couldn't set up an IRA for somebody. There are several providers that do these now.

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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