Every year, companies large and small face the frustration of what to do with uncashed distribution checks.  These checks may have been returned to the plan sponsor as undeliverable or the participants simply never cashed them.

Regardless of the situation, the funds continue to be owned by the plan and need to be available if the participant should ever want to claim them.

Under the United States Department of Labor (DOL), this leaves plan sponsors with two options:

1. Restore the funds to the plan.
2. Roll the funds into a safe-harbor IRA established by a qualified provider in the name of the participant.

According to the DOL, under no circumstances should the money be given back to the employer.

For more information, click here to read "What to do with Those Uncashed Checks" by Terry Dunne in the latest issue of Plan Consultant.