In October 2020, the IRS issued two pieces of guidance addressing (1) the tax withholding and reporting of distributions from qualified retirement plans to state unclaimed property funds, and (2) the ability of taxpayers to roll over funds that were previously escheated to a state unclaimed property fund.
Withholding and Reporting of Payments from Qualified Plans to State Unclaimed Property Funds
Sponsors of qualified retirement plans often find themselves searching for missing or unresponsive participants or beneficiaries.