Does anyone know if a list of custodians exists that will set up IRA rollovers for missing participants without their signature? We have a company that is out of biz - all but 8 folks are paid out. Balances are over $5k so can't force pay. They have not responded to numerous mailings. Attorney for company wants to get all assets paid out by year-end & document allows for IRA rollover option. Thanks!

Under reg. 1.411(d)-4 if the plan is being terminated the plan can either purchase annuities if that is the normal form and distribute to employees or, if no annity payment is required, make a lump sum payment even if it is over 5k. If the employer is out of business and the participants cannot be located why bother setting up an IRA account for them-- since they will never know about their funds-- just reallocate their assets among the remaining participants. Also I assume that the participants could not be located through Social Security.

Can you just forfeit their balance in a terminated Plan? I only thought that was an option in an active Plan.

If you can forfeit the balance from a terminated Plan and the participant does later come back for his/her balance, how would you make the restorative payment?

I think the employee would have to find someone to make a claim to-- If the employer is out of business and liquidated the only possible party is the fiduciary - assuming such person can be located. But if the forfeiture of the assets is made by plan amendment then there is no fid liabilility because reallocating the assets is a settlor (employer) decision. If the ee cannot be located now through the SS system what is the possiblity that he/she will turn up in the future? I though the benefit could be forfeited if it was payable.