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Attorney Wayne
Attorney Wayne, Lawyer
Category: Employment Law
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Experience:  Practicing Law Since 2000
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I am a trustee of our companys profit sharing plan which is

Resolved Question:

I am a trustee of our company's profit sharing plan which is in the process of being terminated because said company is out of business. There are funds that have not been distributed because I cannot find these employees as their employment was terminated several years ago, and despite my attempts to contact them, after separation and again recently, there has been no response.

What happens to these funds now?

The Plan was developed in Florida and will be terminated here by the Administrator.
Submitted: 5 years ago.
Category: Employment Law
Expert:  Attorney Wayne replied 5 years ago.
Hello. Thanks for contacting us.

Profit sharing is usually a defined-contribution plan (like a 401k or similar), So my answer reflects the rule for defined contribution plans.

Here's a link to an article that gives the basics -- including what steps to take to locate someone (there may be more to do!), and, ultimately, setting up some kind of alternative (e.g. IRA) for the missing plan participant.

http://www.nysscpa.org/cpajournal/2006/406/essentials/p55.htm

And here's a link to a guidance letter from the US Dept. of Labor


http://www.dol.gov/ebsa/regs/fab_2004-2.html


I wish you all the best as you wind down the plan!
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