About this BlogWelcome to the Snell & Wilmer Benefits Blog. We will be posting about current employee benefits and executive compensation topics and issues. We invite you to contact the authors with your thoughts or questions.
Imagine it’s March 31 and you are a retirement plan administrator. You have a participant who terminated employment 15 years ago. He turned 70½ last year and now you owe him his first required minimum distribution from the Plan on April 1. You have not thought about this participant or attempted to locate him in the past 15 years. It doesn’t seem like a big deal until you realize if the participant does not receive his required minimum distribution, he will owe a 50% excise tax on the required minimum distribution.
This scenario is common to plan administrators. In trying to keep up with the day to day requirements of administering retirement plans, it is easy to lose touch with former employees or beneficiaries. Read More ›
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