participant terminates and rolls account before all contributions were made to her account

[mariemonroe]

Participant terminated employment on 12/31/17 and immediately rolled her plan account to IRA.

Participant is entitled to a profit-sharing contribution for 2017.

Employer is ready to make the profit-sharing contribution but no longer has an account in which to deposit participant's allocated portion.

Should employer open an account  to hold participant's contribution and ask participant to fill out new paperwork requesting a rollover? Is there a simpler alternative?

 

[Bird]

It doesn't really matter where the contribution is deposited as long as it is a plan account - you don't say how the plan is invested, but if it is on a platform they will typically re-open an account very easily.  If it is self-directed brokerage or similar accounts not on a platform, you either have to open a new account for the participant, or if you have an omnibus account, it can go there.

If it is more than 90 days since the original paperwork was completed I think you need new forms (or is it 180 days...?).

[mariemonroe]

thanks

[CuseFan]

180 days - if the plan language was updated for that.