Abandoned Checks

[Guest CK401K]

When hiring a vendor to search for the rightful owners of abandoned checks, I understand if the fee is reasonable it can be passed on to the participant. However, when a threshhold is established to determine if the administrative costs that would be assessed to the participant/former participant on the cost to reissue the check if the participant is found (i.e $25) and the cost for the vendor's search services (i.e $4), is it reasonable to take these funds as income (fully disclosed to plan/participants) to the plan administrator/tpa/recordkeeper (one insitution). If the participant did try and claim the funds the balance would go to the fees assessed for the administrative costs mentioned above and the participant would not receive anything. What are others doing in regard to the funds that fall below the threshhold?

[Jim Chad]

I disclose a "fee to close dormant accounts". And I take whatever the account is, when it is below that threshold.