An employee cashes out of 401k, but never cashes his check -how does P

[Guest sgriff]

There is a terminated employee who cashed out of their 401k plan, but never cashed his check. Three years have now gone by. If the plan administrator is able to successfully get the funds back (and not have them escheat to the State), how would the plan administrator treat the funds? Would it be a forfeiture or could the plan use the money for future contributions?

[Erik Read]

I would say there is still an obligation to find the participant, and send them a new check. If the check was never cashed, the participant hasn't really recieved distribution, and is still due thier balance in the plan. I think you'd have to treat this like a missing participant.

[Richard Anderson]

If the participant claims to have never received the check is he or she due three years of investment gain on his/her account?