NYC-TRS
Have a client who is a beneficiary on his sister’s NYC-Teachers Retirement System account. His sister listed him and their mother as beneficiaries at 50% each. His mother passed away before his sister and his sister did not update the beneficiary form. They are both listed as primary beneficiaries. The brother received his portion of 50% but the NYC-TRS is making the mother’s 50% payable to an estate for the sister. My question; is anyone familiar with NYC-TRS beneficiary language that the mothers portion would be payable to the other primary beneficiary or know of a IRS PLR that might allow the funds to go to the brother?
Permalink Submitted by Alan - IRA critic on Thu, 2024-04-11 01:07
It is highly unlikely that the plan would mishandle their beneficiary rules due to the massive liability implications for such an error. Hopefully, the sister left a will indicating her desired beneficiaries. That said, whatever amount such a beneficiary receives from the TRS will likely be in a lump sum.