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Un-cashed / stale dated checks represent the lump sum payment to former participants from an ERISA qualified plan. The dollar amounts generally represent the net after-tax of vested account balances or accrued benefits earned while being a participant in the plan. Once taxed and distributed, these funds are no longer plan assets. PenChecks Missing Distributees offers a cost-effective, transparent solution that addresses the risks and costs of holding, accounting for, or incorrectly processing these distributions.

See "5 reasons not to redeposit un-cashed checks back to a qualified plan", our commentary on this issue.

PMD provides client-centric, professional administration in the delivery of its service:

• PMD receives funds, participant name, last known address and social security number from the client (institution representing the un-cashed/ stale dated benefit check).
• PMD establishes a Taxable Savings Account (TSA) with PenChecks Trust Company of America on behalf of the Participant.
• PMD conducts a thorough investigation to locate the participant or heirs in order to pay out the benefit.
• PMD invests the funds in accordance with the DOL Safe Harbor Standards of Investments for Default/Missing Participant IRA's.
• PMD registers each TSA with the National Registry of Unclaimed Retirement Benefits (NRURB).
• Once a participant is located, PMD will adjudicate their claim, verify their identity, process them through the Patriot Act and transfer the funds to their control.
• If no claim is made with respect to a Taxable Savings Account, PMD will escheat the TSA in accordance with the law of the state of the participant's last known residence. Time periods vary from state to state but 3-5 years of inactivity is common.
• PMD will issue a 1099R annually.

In the role of acting as trustee or custodian of an ERISA Qualified Plan, un-cashed / stale dated checks can also come in the form of un-cashed fees paid from plan assets as well as rollover payments that have also gone un-cashed for one or more reasons. If this happens to be one of your challenges, contact us: We have the solution