Lori H Posted September 10, 2008 Share Posted September 10, 2008 A small DC plan is terminating. A participant is deceased, his wife is deceased and there are only children and step children available. The plan is wanting to close out his account. Can they pay the balance(appx $5300) to the children and be done with it? There was no estate trust set up. Link to comment Share on other sites More sharing options...
david rigby Posted September 10, 2008 Share Posted September 10, 2008 Can you use the plan's definition of beneficiary to identify the appropriate party/estate? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Guest Sieve Posted September 11, 2008 Share Posted September 11, 2008 As david suggests, if there is no valid benficiary (either because there is no election of beneficiary on file or because the named beneficiary pre-deceased the participant), then the only valid beneficiary is the defualt beneficiary as per the plan's terms. Link to comment Share on other sites More sharing options...
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