Residual Balance for Terminated Plan

We have a plan that terminated and distributed all of the assets.  Unfortunately a residual dividend came in, despite the money having been liquidated into cash.  It's a small amount, so what's the best way to handle this without having to cut everyone a $0.50 check?

Can the plan sponsor issue an invoice to the Plan for mailing, etc. and pay it that way?

I would NOT pay money to the sponsor. Bill them for miscellaneous work, like researching the problem and have the plan pay you. Alternative is to cut everyone a $.50 check and bill 3X whatever the amount is for calculating and processing them.

2 minutes ago, Bird said:

I would NOT pay money to the sponsor. Bill them for miscellaneous work, like researching the problem and have the plan pay you. Alternative is to cut everyone a $.50 check and bill 3X whatever the amount is for calculating and processing them.

That's what I thought, but as expected the client is balking at that.  Thanks!

1 hour ago, metsfan026 said:

That's what I thought, but as expected the client is balking at that.  Thanks!

Tell them how much you'll charge to allocate and distribute a handful of pennies.

If the plan allows expenses to be paid from assets and a recent invoice that could have been paid from the plan was instead paid by the plan sponsor, the plan sponsor can submit that invoice to the plan for reimbursement.