missed distribution

[Lori H]

A participant in an ESOP was set to receive distributions over 5 years. Last year the sponsor failed to make the 4th year distriibution. Does the 4th and 5th year distributions have to be taken this year or can they make the 4th distribution this year and the fifth distribution next year? Thank you.

[QDROphile]

The plan must be operated in accordance with its terms. I doubt that correction of the operational failure by simply skipping one year and extending the installment period would be an acceptable correction.

[Marcus R Piquet]

Not only that, if the missed distribution would have been paid at a higher value if it had been paid timely, you ought to pay that missed installment at the higher value.

[Guest tmills]

Following the general philosophy of EPCRS, in addition to the above they should also include a lost earnings amount to compensate for the lateness of the 4th installment.