Plan Termination - What to do with really small account balances (under $1.00)?

Hi. We are in the process of terminating our 401k plan. We have several participants with really small balances (many are under $1.00). Is there a de minimis amount ($1.00, $5.00, etc.) under which it is permissible to move those really small balances into forfeitures instead of forcing the participant to take action? Or are we required to send all of these small balances to IRAs? I thought that there was a rule where if the cost or burden to the plan sponsor exceeded the account balance, then the government allowed such a forfeiture. Thanks for any thoughts. 

Apply it toward the distribution fee and be done with it. You've already spent over a $1 worth of your time. 

6 minutes ago, LauraERPA said:

Apply it toward the distribution fee and be done with it. You've already spent over a $1 worth of your time. 

What do you mean by distribution fee?

TPAs and recordkeepers generally charge a distribution fee. Any balance less than the standard distribution fee(s) can be applied toward it.

21 minutes ago, LauraERPA said:

TPAs and recordkeepers generally charge a distribution fee. Any balance less than the standard distribution fee(s) can be applied toward it.

I guess that is the same as transferring the balances to forfeitures and then paying plan expenses (like the TPA and record keeper distribution fees) out of the forfeiture account, correct?

If the plan’s administrator (or other responsible plan fiduciary) had approved the service provider’s distribution-processing fee (including for plan-termination distributions), applying the approved fee might be a reasoned method.

Think carefully about what the resulting Form 1099-R tax-information report will look like.

Will the trustee’s, custodian’s, or other payer’s software generate a 1099-R report if a distribution’s amount is $0.00?

Think about how the plan’s administrator (usually, the employer) will make and keep evidence that each zeroed-out distributee was paid all that was due her.

This is not advice to anyone.