The assets are at fidelity and they issue check payable to the trustees on 12/29. The trustees deposit into corporate account and write the check to partipant in 2004. What year is he/she 1099'd?

I thought the payment of funds and issuance of 1099s is a trustee function. Payment from the asset custodian to the trustee is a different matter.

The way i understand it, in 2003 the $'s came out of the trust. But the trustee issued a check in 2004 to the part.

2004, but why did it go into a corporate account?

check from fidelity was made payable to the trustee and they ran it through their checking acct to pay 80% and deposit 20% w/h

The trust should establish its own checking account for that purpose. Participant distributions should not be returned to the sponsoring corporation.

It is most likely that Fidelity is the investment vehicle only, not the trustee or record-keeper. As such, they have no authority to cut a check directly to the participant and are not responsible for the creation of the 1099R..