Returned distribution checks

[JKW]

I have plans that payout participants with under 1000.00 for the automatic cash out provision.

Lately it seems several participant don't cash the checks or the check is returned due to the address being no longer valid. Usually these checks are under 200.00.

What are other administrators doing with these checks? For a plan to use extensive steps to try to locate the missing participant - it seems expensive for such a small balance. And we don't want to put them back in the plan.

Before rolling them to an IRA using the last know address - anything else we should consider?

Thanks for any guidance.

[BG5150]

At my previous job, we used Inspira. They will try to track down the people, and if they can't they'll do an auto rollover.

[Lano24]

We have two termed parts with balances under 30 cents with no known address. Can we simply liquidate their accounts and put the money in the forfeiture account? Has the irs / dol issued a ruling on a deminimis balance amount?

[Bird]

At some point logic has to prevail. Yes.

[GMK]

Looks like the cost to distribute is more than the distribution amount.

See post #2 here:

http://benefitslink.com/boards/index.php/topic/40611-excess-match-deminimus-distribution-of-50/?hl=deminimus