Chances are you have a number of missing 401k participants who have moved and not provided a current address. As a Plan Sponsor you have a duty to make every effort to locate these individuals.
First, you should exhaust all internal sources, which may include verifying last known addresses on other items such as health plans or even contacting known beneficiaries. Other popular options include the following:
Vendor Search Several vendors offer services, for a nominal fee, to locate missing participants. An advantage of vendor searches is that any findings can be used to update your plan records for future communications with the participant.
IRS Missing Participant Program The IRS offers a mail forwarding service to missing retirement plan participants. This can be a effective means of getting distribution paperwork along with a collection of quarterly statements to the account owner. The downside is that the new address is not communicated back to you and it generally takes time.
If interested, send a cover memo and the mail to be forwarded to:
Letter Forwarding Unit, Disclosure 6
INTERNAL REVENUE SERVICE
1301 Clay Street, Suite 840-S
Oakland, California 94612
Default Rollover If your 401k plan allows for it, you may be able to do an automatic rollover into an IRA. This generally only applies to account values less than $5,000. Most vendors offer a streamlined default rollover IRA service for this option and they can assist you with the process.
To learn more about tracking down missing 401k participants, please contact your 401k Advisors.Related Topics
- missing 401k, lost participants 401k, missing 401k participant