Stale Dated Checks

  • Recordkeeping will notify Transactions of any outstanding distribution checks that have stale dated. These lists include cash distributions, rollovers, refunds, etc. 
  • Transactions will notify participant via email with the following template, to request that the participant call in to be authenticated by a CSR and initiate a re-issue of their check:

    "Good afternoon,

    We are reaching out to advise you that a check issued to you from a recent distribution has stale dated, as it was not cashed in the necessary time frame. We are seeking reissue instructions to have a new check sent to you. Please give us a call as soon as possible to provide us reissue instructions for your distribution check, and please note that any delays may result in your funds being reinvested into your 401(k) account.
    If you have any questions, please let us know.

    Thank you!"
  • Transactions will forward a call out request to Participant Services Team to make contact with the participant as well. 
  • We will grant the participant with 7 business days from the first attempt to contact to reach out with reissue instructions.
  • Participant should be advised during reissue that a $30 fee will apply. Reissue request should be sent to recordkeeping with a manager copied for approval, per normal procedures. 
  • If check was issued in prior year and reissue occurs the following year, please note that there would be an additional $50 fee to amend the 1099-R.
  • If we do not receive any reply or contact back from the participant by the 8th business day, a request should be sent to recordkeeping and manager to request that the funds be reinvested into the participant's account. Ensure to edit subject line of request to note that Derek's approval is required to reinvest.
  •  Please note that the distribution fees are not returned to participant when the funds are reinvested into their account. If participant requests another distribution down the line, they would again be subject to the plan's distribution fee, so we should stress to participants that we are in need of prompt response to avoid this occurring.



Returned Checks

  • Recordkeeping will notify Transactions of any checks that have been returned to the custodian by the postal service.
  • When checks are returned, the custodian will either destroy the check depending on the dollar amount or will hold the check in the safe. 
  • Any checks destroyed will need to be reissued per normal procedures. If check is returned due to error by participant (e.g. did not provide account number to be written on check or participant did not notify us of an address change) we would charge the participant normal reissue fee of $30.
  • If check is held in safe by custodian, we will be able to forward the check to a different address at no cost to the participant.
  • If a rollover check is returned by receiving financial institution and it is under $20,000, we can immediately request that the check be forwarded to the participant's address of record. This address should be verified with LexisNexis first and the request should be sent with a request for manager approval before recordkeeping will initiate.
  • If a rollover check over $20,000 is returned by receiving financial institution, we should make contact with the participant first to confirm if they would like check forwarded to their AOR or if they'd prefer an alternate resolution such as a reissue.
  • Please note that if check is returned by receiving financial institution due to a missing account number and participant asks us to add an account number to check, this cannot be accommodated. The check would need to be reissued with a request added to recordkeeping to note any applicable account number. Reissue fee would apply.
  • If a check that was sent directly to participant is returned due to an invalid address, we should request that the participant provide address verification such as a utility bill to verify their correct address before forwarding. 
  • Once address verification is received, we can forward this to recordkeeping and management through a Citrix attachment. Management approval should be requested in subject line and body of email.