In a qualified retirement plan, when lump sum distribution checks go un-cashed, a benefit is still due to the participant. However, if taxes are withheld, paid, and reported to the taxing authorities under a prior tax year a Default/Missing Participant IRA is not an option as a taxable distribution has taken place. Since the funds are now non-qualified, they cannot be simply re-deposited back into the plan, unless the issuing organization makes the effort to get the taxes back.

PenChecks is an expert and industry leader in qualified retirement plan distributions. We help organizations eliminate or reduce the administration and financial burden associated with the complexity and sensitivity of dealing with un-cashed / stale dated checks from ERISA Qualified Plans. We assist plan sponsors and institutions in resolving these accounts by attempting to locate Missing Distributees and/or the eventual escheatment of funds to the proper state authority.

Our unique, efficient outsourcing service can save your organization time and money dealing with the administration and compliance issues that accompany un-cashed / stale dated checks. Call us today to learn more about our services and how we can help.