IRS Publishes Helpful Guidance On Uncashed Checks From Qualified Retirement Plans

The Internal Revenue Service (IRS) recently issued Revenue Ruling 2019-19, which addresses three basic questions related to the treatment of uncashed checks that result from qualified retirement plan distributions.

Uncashed Checks – Background

Uncashed checks are unfortunately a common occurrence – and frustration – in the world of qualified retirement plans. Issues with uncashed checks can arise in a number of contexts, but one common situation involves mandatory payments from a plan (such as age 70-1/2 required minimum distribution or force-outs of plan balances under $1,000). In this situation, a plan administrator will typically issue a check to the plan participant's last known address on file, which may or may not be the plan participant's current address at the time of payment. This can result in the check remaining uncashed for extended periods of time.