Felicia Posted March 21, 2001 Report Share Posted March 21, 2001 An employer maintains an IRS Model SIMPLE IRA with a designated financial institution. One of the participants dies. There is a nonspouse beneficiary. The non-spouse bene does want to take distributions over his life expectancy. Is the employer OBLIGATED to keep the participant's account in the plan and permit the beneficiary to take distributions over his life? If so, what is the employer's responsibility with respect to that bene? Keep the account in the deceased's name? Must he track the bene's whereabouts? Give the bene annual statements? If the employer goes out of business or terminates the plan, doesn't that specific plan account need to be terminated along with the others? Link to comment Share on other sites More sharing options...
Appleby Posted April 5, 2001 Report Share Posted April 5, 2001 Once the fund are deposited to the SIMPLE , it becomes 100% vested. The employer no longer has any jurisdiction over the assets. With respect to the beenficiary options, the SIMPLE IRA is treated in the same mammer as the tratitional IRA is. The IRA owver or beneficiary is on their own. Life and Death Planning for Retirement Benefits by Natalie B. Choatehttps://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/ www.DeniseAppleby.com Link to comment Share on other sites More sharing options...
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now