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PenChecks Offers Abandoned Plan Service

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A California company can help with shutting down a 401(k) plan or other retirement plan that qualifies for special tax treatment.

PenChecks Inc., La Mesa, Calif., says its Automated Solution for Abandoned Plans Program can help insurers, independent benefit plan administrators and others wind down the operations of abandoned qualified plans.

PenChecks will handle Safe Harbor distributions to participants and search for missing participants, the company says.

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PenChecks also will try to help an institution or administrator collect any fees the plan might owe.

The U.S. Labor Department classifies a plan as abandoned if the sponsor has made no contributions or distributions in the past 12 months.

The typical abandoned plan has about $100,000 in plan assets and 8 employee participants, PenChecks says.