We issued a distribution check to a participant in November 2009, however the check has not yet been cashed. Do we issue a 2009 Form 1099R for this participant?

My understanding is a 1099R is issued when the check is issued to the participant - not when it is cashed.

Any guidance would be appreciated.

A participant cannot avoid being taxed by not cashing the check. Taxation occurs when the check is mailed.

Assuming the check was recevied.

So, the mail box rule does not apply to issue of whether benefits payment has been made? Actual receipt is required?

Frankly, I have no idea! As a non-TPA/recordkeeper/custodian, I've never dealt with it.

But, I would figure, at a minimum, that an involuntary distribution sent to the wrong address and returned by the post office--or lost in the mail & never delivered--would not be treated as "made available". Likewise, I would think, for a requested distribution sent to the wrong address. And I don't see it being treated the same as constructively-received employee compensation.

And who would know? Not the TPA/recordkeeper/custodian who sent it and is now preparing the Form 1099-R. What's a poor TPA/recordkeeper/custodian to do? Only send out distribution checks via certified mail, return receipt requested?

The issuer of the check would prepare a Form 1099-R for the year of distribution in all circumstances unless the check is returned as undeliverable, in which case I believe the 1099-R ought to be issued/filed only for the withheld amount (unless the withheld amount is used to offset other pension distributions during the year or unless a refund of the withheld amount is requested).