PACE will timely review and request all proper information to confirm a participant’s eligibility for a withdrawal or loan from the plan.

It is important to follow a consistent protocol and maintain appropriate records and proof for any distribution or loan due to financial hardship and abide by the IRS financial hardship guidelines.

A Required Minimum Distribution (RMD) can be difficult for a plan sponsor to monitor and track once an employee has retired. Some active employees have the option to postpone the RMD until the year in which he/she retires while owners are exempt from this forgiveness.

Failure to process an RMD carries an excise penalty up to 50% of the RMD amount.


 

Distribution Services

  • Send distribution forms to participants

  • Review distribution forms

  • Review distribution requests

  • Review and approve or deny distribution claims:

    • If approved, process the distribution

    • If denied, notify participant and assist with any appeal

  • Hardship distributions:

    • Review request for adequate hardship

    • Notify payroll provider to suspend deferrals

    • Notify participant when they are allowed to resume deferrals

  • Remit tax withholding payments

  • Send Forms 1099-R to participants and the IRS

  • Notify participant, or beneficiary, of required distribution and provide election form and process distribution or rollover

  • Authorize the use of forfeitures of non-vested account balance

  • Authorize the use of forfeitures as permitted by the Plan

  • Maintain copies of all distribution paperwork

  • Assist participants with distribution requests

Loan Services

  • Send loan paperwork to participants

  • Review loan request

  • Approve or deny loan requests

  • Send loan documents and amortization schedule to participants

  • Review and Maintain signed copies of loan documents

  • Review and approve or deny loan repayment suspension for a leave of absence

  • Decide if/when a loan default occurs

  • Notify participant of default and tax implications

  • Send tax forms for a loan default

 

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