Managing Missing 401(k) Participants: Best Practices for Employers

ARTICLE | July 29, 2024

Authored by Vasquez + Company

Managing missing 401(k) plan participants can be a significant challenge for employers, particularly when former employees leave with outdated contact information. The article "What Employers Can Do About Missing 401(k) Plan Participants" provides a guide to best practices for locating missing participants, including initial search methods, escalating efforts, and preventive measures.

Key Points:

• Initial Steps: Use certified mail, review records, contact beneficiaries, and utilize electronic tools to find missing participants.
• Escalation: If initial efforts fail, consider professional search services, and potentially charge fees to the account if permitted.
• Handling Unsuccessful Searches: Follow plan documents or policies for managing accounts with missing participants, including potential allocation of funds among remaining participants.
• Prevention: Maintain accurate records, periodically confirm contact info, and audit census data regularly to minimize future issues.

For a comprehensive approach to managing missing 401(k) participants and avoiding administrative headaches, read the full article here.

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