IRS Releases New Guidance for 401(k) Plan Administrators
At the beginning of September, the IRS issued revenue ruling 2019-19, which addresses certain particulars or reporting and withholding from 401(k) plan distributions. While this guidance was welcome, many plan administrators are still hoping for further clarification in related areas.
Difficulties arise for plan administrators when distribution checks go uncashed or plan participants go missing. Specifically, revenue ruling 2019-19 offers guidance for situations where the plan participant is sent a distribution but does not cash the check. It does not address what to do when a distribution is sent but the participant is missing. As such, plan administrators should do their best to develop and follow a consistent and reasonable plan‚Äîand to keep detailed records‚Äîin order to be well prepared for when further guidance is released.
For more details, read the article in full at Employee Benefit News.¬†