NBS2121

I left a detail out, the granddaughter is the daughter of a deceased child. The participant was divorced so no spouse. The plan states that distributions after the spouse go to "your children, including adopted children in equal shares (and if a child is not living, that child's share will be distributed to that child's heirs" The 3rd party advisor stated that “child’s heirs (granddaughter, in this case) are only eligible if all children of the participant are not living”. The plan administrator followed this and distributed to the son only. Now the plan administrator has said that the granddaughter should have received half.

Can the plan make the granddaughter whole before the recoupment is complete?

The participant died with no named beneficiaries. The participant has 2 surviving family members, son and granddaughter. The 401K company said that IRS regulations state that grandchildren are not eligible to receive distributions. They asked for information about the estate with the expectation that the distribution would go to the estate. After a 7 or 8 month delay the check was distributed to the son. The son involved a litigation attorney to send a letter requesting the additional funds from the delay and then they responded with the distribution was done incorrectly and that the granddaughter should have received half. This notification happened 1 and a half years after the check was distributed. From a beneficiary how does this get corrected?