Are Uncashed Checks Plan Assets?

Sarah Jenkins
Sarah Jenkins
• • 7 min read

Under Dol Regulations, Uncashed Distribution Checks of Missing Participants Are Still Plan Assets Protected Under Erisa, Which Can Be a Fiduciary Risk for Plan...

Are Uncashed Checks Plan Assets?

Under DOL regulations, uncashed distribution checks of missing participants are still plan assets protected under ERISA, which can be a fiduciary risk for plan sponsors

plan sponsors
PLANSPONSOR, with its reputation for editorial integrity, objectivity, and leadership, is the trusted information and solutions resource for America's retirement benefits decision makers.
› about-plansponsor
and recordkeepers alike if they are voluntarily reporting plan assets as unclaimed property.

Are uncashed checks income?

The answer, which most do not find surprisingly, is that “yes,” a check that was distributed and received by the payee so he or she could cash the check-in the year issued is taxable income to the participant (or beneficiary) and subject to Form 1099-R reporting and withholding rules.

Must Read

What is a retirement distribution check?

ANSWER: Uncashed distribution checks occur when retirement plan participants fail to cash or deposit a distribution from their qualified retirement savings account, for a variety of reasons, including an incorrect mailing address, a lost or misplaced physical check, a distribution check that was not anticipated, or as ...

Sarah Jenkins

Sarah Jenkins

Senior Technology Editor & AI Specialist
Twitter Linkedin Github

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.