No Beneficiary on 401(k) Plan
What options are availabe to parents whose son died without designating beneficiaries on his 401(k) plan at work?
To make matters more complicated, he did not have a will.
What options are availabe to parents whose son died without designating beneficiaries on his 401(k) plan at work?
To make matters more complicated, he did not have a will.
Permalink Submitted by Alan Spross on Wed, 2010-04-28 18:34
If he was married at the time of death, his spouse is deemed to be the beneficiary.
If not married, most plan provisions make his estate the beneficiary and with no will state intestate provisions would determine where the funds go. If he passed prior to his RBD, the 5 year rule will apply, but the plan will probably push to just distribute the amount to the estate ASAP which would make the funds taxable in the year distributed. The executor should contact the plan administrator ASAP if this is not desired to determine if the plan will retain the funds for any part of those 5 years.
Permalink Submitted by mk foss on Wed, 2010-04-28 19:09
I agree. The fact that there is no will is a complication. You will need to have the local probate court appoint someone to administer the estate. I recommend that you find an attorney to help with this. Sometimes there can be complications if a beneficiary under the state law is appointed as an administrator so you need someone experienced to guide you through this difficult situation.