If one cannot locate the beneficiary of a deceased participant with a $ 600 accoutn balance in a terminated DC plan, what are the options? We have tried a private locator company.

I know the PBGC program allows you to purchase an annuity (viable here?) or deposit money in an individual bank account opened in the participant's name
I have heard of sending 100% witholding to IRS; has anyone done this successfully?

Are there any other options? Does anyoen see a problem with any of the above mentioned?

Don't think you would make any deposit in a bank or w/ IRS in participant's name. You know he's dead and not the proper payee. Question is: Is the named bene dead or just can't be found?? If you have an SSN for the bene, one should be able to determine if he/she is dead or alive. If dead, then hopefully you have a findeable contingent bene. If missing, maybe the plan and/or bene designation has some "presumed dead if .... " provisions. Even though an ERISA plan, I believe state law can be used to determine presumption of death. As a last resort, I'd consider paying the $$$ to contingent bene -- after getting a release and indemnification from him/her.

No, the PBGC program is not open to a terminating DC plan.



Seems to me that paying anything to an "individual bank account" is not the right idea. How about using an IRA?

http://benefitslink.com/boards/index.php?showtopic=11246

http://benefitslink.com/boards/index.php?showtopic=3754

Hello Alexa! Say, I'm particularly interested in the IRS witholding option. I have heard the expression' 100% back-up witholding"', as a solution for plan sponsors with missing participants. Trustee just sends small balances( under $5k) to IRS for credit as a tax payment.

This seems like a simple solution and who could complain? lol
Thoughts on this are appreciated.