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Bogus SSN used for employment. Plan Now Terminating

Vikram Kalra

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A former employee used a bogus SSN when hired.  The employee became a participant and earned profit sharing and safe harbor benefits (no 401(k) deferrals).  The participant was one day arrested for domestic battery and then found to be in the country illegally.  The participant was subsequently deported and never heard from again.  Numerous attempts were made to find and reach the individual, but all were unsuccessful.  Now, the plan is scheduled for termination.  What are some ideas on how to handle this account?

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Sorry about from the hip answer---Depending on plan document, we had several bogus SSNs for a south Texas employer and I believe that forfeitures to the other employees or reducing that year's contribution was the way we went. If not desired, they could also pay plan expenses if the forfeitures allow it (or with a plan amendment to allow).

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