Distribution to Japanese ex-pat

[msmith]

A participant will be retiring later this year and is living back in Japan. He has elected a cash distribution - but the Recordkeeper cannot wire funds to a Japanese bank.

As an alternative, the Employer is asking if the retired participant can have his distribution sent to the Employer; and, in turn, the Employer has the ability to wire the funds to him.

Is this legal?

[ESOP Guy]

They can't send the funds a bank that has a branch in the US and Japan? They can't send a check for him to cash at a bank that has both US and Japan branches?

Why can't they send the money to Japan? This isn't some third world country and this is the 2013.

To answer your questions: No, I would not have the money sent to the employer's account and then wired to the person.

By the way make sure you have the tax withholding correct. If this person isn't a US citizen you need a W8-Ben completed or the tax withholding is well above 20%.