30 person 401(k) at record keeper platform
IC called me to ask vesting on a Participant. Since plan has never had anything but deferral and SHNEC, I said 100%.
I found out that the Employer had sent distribution forms straight to investment company instead of to me. I then confirmed that he had retired 2 years ago and asked her to send me copy of the forms
When I went through my checklist, I saw the form asked for just $10,000 of a $60,000 account. The Plan Doc only allows for lump sum distributions. It is a Corbel volume submitter with an adoption agreement.
I am thinking that asking for the money back isn't going to work. And I think the EPCRS fix would be to amend the Plan to allow partial distributions, at least for this year. He was never an HCE, so there would be no discrimination issues.
What do you think? Besides, telling the employer please always send the form to me, what would you do? Would anyone feel comfortable ignoring this as a one time mistake?