Plan does not have the "cashout" rules for balances under $1000 (client has us send paperwork out to EVERY terminated participant regardless of balance).

There are a few termed participants with balances under $200 who are not responding.

Since there is no required withholding under $200 and the participant can rollover the whole amount, could the plan send them a check (provided the participant has received the special tax notice and a letter stating that non-response will result in a check being sent?)

I realize that the client can amend the plan to add the cash out rules, but I was wondering what others thought about sending a check.

Under what provision of the plan document would the course of action you describe fall?

so that's a "no" from WDIK...

You got that one right on. No cashout provisions mean NO cashouts. You could amend the plan and it would be a good idea. You don't want to be searching for folks 10 years from now for coule hundred dollars.