Participant was paid out of termed plan in '01, elected rollover to new employer plan. We have recently discovered that check was never cashed. Contacted participant, he no longer works for employer & would like check issued differently (cash or IRA rollover). 1099-R was issued for 2001 with code H. Re-issuance of check will change distribution code - how is the change in tax status reported, does a corrected 1099-R get issued?

Why not tell the part. that the plan will only do a direct rollover to the IRA & issue a revised 1099R for 2001 and transfer the funds to the IRA. Otherwise tell the part that it will be a taxable distribution.