Terminating plan - Unknown

Hi, 

I've encountered a very strange situation, one of the terminating we have a participant with a bad ssn and also the account was set up without a name I'm not really sure how this could have happened.  Since the ssn is incorrect and we don't have a name how can these account be handled does IRS provide any guidance on bad ssn and unknown name. 

Any thoughts? 

If the records show an account with neither a name nor a taxpayer identification number, the plan’s administrator might investigate whether that supposed participant ever existed, or whether there is an error in the records.

Is the plan a defined-benefit plan, or an individual-account plan?

What does the record show as the accrued benefit? If not for the plan’s termination, what otherwise would have been the vested benefit?

How strong or weak are the employer’s other records, particularly on employment-law matters?

Would finding one or more Form W-2 wage reports that used the “bad” SSN, show a name the employer then assumed was associated with the number?

What information describes that the SSN is “incorrect”?

3 hours ago, Peter Gulia said:

If the records show an account with neither a name nor a taxpayer identification number, the plan’s administrator might investigate whether that supposed participant ever existed, or whether there is an error in the records.

Is the plan a defined-benefit plan, or an individual-account plan?

What does the record show as the accrued benefit? If not for the plan’s termination, what otherwise would have been the vested benefit?

How strong or weak are the employer’s other records, particularly on employment-law matters?

Would finding one or more Form W-2 wage reports that used the “bad” SSN, show a name the employer then assumed was associated with the number?

What information describes that the SSN is “incorrect”?

its a DC 401k plan and looks like the pervious RK did not provide the part indicative.  I can check with the Plan sponsor on the W-2 reports. 

We have a client in Houston with apparently several immigrants who were sold bogus ss no’s. The record keeper Fidelity notified us and we had to correct the record. Not as unusual as it should be today

The Plan Doc should address unknown, unreachable, incompetent situations, usually they are able to forfeit the monies with the understanding that they are refundable to the participant/beneficiary if or when resolved.  A corporate resolution documenting the action, and the actions to be taken upon restitution (assumed earnings, etc.) will suffice.  Most likely it was an overfunded safe harbor match, mutual fund's fee redemption, class action settlement payment, or trailing dividends from a closed fund that the prior RK didn't track to a current investment.