Reporting for Lost Participant Money Sent to PBGC

[justanotheradmin]

I apologize, I'm sure this question has been asked and answered - so if someone could point me to the correct thread, I'm happy to read up on it. 

I also wasn't sure if this question was better suited for the distribution message board or this on. 

I don't deal with PBGC covered plans often - so my apologies in advance if I am using the wrong terminology or asking the wrong type of question. 

PBGC covered plan - terminated and closed. There were a about a dozen participants whose benefit was sent to the PBGC per the lost participant rules. 

We are now preparing 1099-Rs for the plan. The participants who elected something ( lump sum cash, rollover, etc) I have no problem preparing the 1099-Rs. But I don't know how to report those whose benefit was transferred to the PBGC. 

Do they get 1099-Rs? I'm thinking yes - but I've been wrong before

If they get a 1099-R what code goes on the form?

I'm sure there is a publication or guide that deals with this - I'm just not sure where to look. 

I called the PBGC for an answer and was told I would get a call back - but I haven't heard yet so thought I would ask all you smart folks here. 

[david rigby]

My understanding is that 1099's are issued for distributions, but the payment you describe is a transfer.  No 1099 needed.  

You may want to review the 1099R instructions, just in case.   Also, I believe there is a previous Q&A on point, somewhere in this Forum.

[pensiongeek]

I agree with David Rigby.   It is a transfer of liability, not a distribution. 

[justanotheradmin]

Thank you David and pensiongeek - that's the confirmation I needed!