Plan Termination Distribution Services
The Compliant Way to Pay Out Participants of Terminating Plans
When terminating an employer-sponsored retirement plan, ERISA requires that all participants be paid out. The Department of Labor (DOL) also has guidelines that must be followed to address participants who are missing or non-responsive. PenChecks Trust® helps you streamline and simplify the payout process with two different levels of plan termination distributions services: Express and Premier.
Call 800.541.3938 to speak with a Retirement Distribution Specialist today!
Express Terminating Plan Distributions
After you have collected the participants benefit elections, send us the participant’s contact and payment information.
Send us the funds to pay them out.
We process the distribution in a timely and accurate manner.
It doesn’t get much simpler. But that’s not all we do for terminating plans. As with our Express Distributions Service we also:
- Conduct participant searches when needed for returned checks
- Handle 1099-Rs and tax payment and reporting
- Monitor and resolve uncashed checks
To learn more about this time-saving service, schedule a free consultation online with one of our retirement plan payment processing professionals.
Premier Terminating Plan Distributions
This turnkey service removes what can be long and cumbersome processes from the Third-Party Administrator (TPA) and Plan Sponsor, allowing them to focus on core business activities.
We start by performing advanced searches for all participants. We mail all benefit election packets and handle the entire process, from collecting benefit election information and taking participant calls, to paying out the participant and handling the taxes.
If the participant can’t be located, we establish a Missing Participant IRA to hold the funds until the participant claims them. In either case, we do all the steps needed to make the payout so you don’t have to.
Learn more about our Premier service, schedule a free consultation online with one of our retirement plan payment processing professionals.
The Comprehensive Solution for Terminating Plan Payouts
This ensures all participants are paid out or can be moved to a safe harbor IRA if they are deemed missing or non-responsive.
- Send us the participant’s contact information and assets
- We perform a robust search to determine most current address
- We send benefit election notices via first class mail
- Participants respond through an online participant portal or via paper with their benefit elections (PenChecks handles all participant calls)
- For Participants that do not respond within a prescribed window, we send a certified letter.
- After the expiration window for making a benefit election, each remaining non-responsive or missing participant’s benefit is moved to a Safe-Harbor IRA in their name. This allows the plan to be terminated as all the money has been distributed.
Get Started Today!
Create an online processing account. There is no fee to register, and it only takes a few minutes to complete.
Forward plan assets for distribution to PenChecks Distribution Trust. Check and wiring details provided at login.
Enter payment processing distribution requests online. Requests can be made one at a time or via bulk upload.