New Guidance on Missing Participants & Escheatment to State Unclaimed Property Funds
By EsqSocial Corporation 20/01/21
The Internal Revenue Service (IRS) recently issued Rev. Rul. 2020-24 and Rev. Proc. 2020-46 to provide direction with respect to qualified plan distributions paid to a state unclaimed property fund (i.e., an escheatment of the amount to the state), which occurs most commonly for missing participants in a terminating plan with small balances. Specifically, the guidance addresses (i) the tax reporting and withholding treatment for such amounts, and (ii) whether, in the aftermath of such a...
By: McDermott Will & Emery