Jump to content

Trustee Dies - no authorized signer


Recommended Posts

we have a client who has passed away earlier this year.. The business is shutdown and we are looking to terminate the 401k plan.. there are 6 employees who are requesting distributions.. there is no other authorized signer or trustee on the plan and the wife who co-owned the business is non-responsive..

first and foremost we'd like to get the employees their dollars.. and then finish up the plan termination.. thoughts on best way to proceed here?

Link to post
Share on other sites

Frankly, it's not your responsibility unless you're a fiduciary. You should send a certified, signature required letter to the wife explaining what needs to happen. Copy their attorney if you know who it is.

Then, if she doesn't respond, you're done.

 

  • Like 1
Link to post
Share on other sites
On 11/24/2020 at 1:18 PM, Ahuntingus said:

we have a client who has passed away earlier this year.. The business is shutdown and we are looking to terminate the 401k plan.. there are 6 employees who are requesting distributions.. there is no other authorized signer or trustee on the plan and the wife who co-owned the business is non-responsive..

first and foremost we'd like to get the employees their dollars.. and then finish up the plan termination.. thoughts on best way to proceed here?

You did not state your relationship to the plan. This might help (FAQs About The Abandoned Plan Program - DOL). https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/abandoned-plan-program.pdf

Also https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/abandoned-individual-account-plan

It is possible that the financial institution holding assets for an abandoned plan will refuse to serve as QTA. That would be a nightmare scenario, as getting the DOL involved might not help, and it would then be necessary to have a court assign trusteeship to a party.


Good luck

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...