J&S Survivor predeceses participant

[Guest Jeff Hewett]

I have a Joint and Survivor 401(k) profit sharing plan. A participant chose a spouse/daughter (50%/50%) benefit split. The spouse falls into the J&S category.

The spouse passed away 6 months ago and no new bene form was completed. The participant recently passed on. The daughter now needs the money immediately to pay burial expenses.

I understand that J&S rules require at least 30 days before benefits can be paid out. Since the wife predecesed the participant is there a wait on distributing the funds to the daughter? How much can be distributed? Does part of the distribution go to either estate?

Thanks in advance,

Jeff

[david rigby]

Perhaps a bit more information.

Was the employee still actively employed?

Retired and elected a form of distribution? If so, exactly what is the elected form of distribution?

Does the plan address the potential of a contingent beneficiary?

[Guest Jeff Hewett]

The employee was still actively employed.

The documents do not explicitly address the issue of a contingent beneficiary.

Jeff

[mbozek]

Are you saying that the participant elected to give the spouse a 50% interest in his account balance payable as an annuity and pay the other 50% to his daughter? If so then daughter is entitled to 50% of account balance under bene. designation. Daughter can waive the 30 day waiting period. Q is what about 50% benefit due to spouse-- Need to review plan to determine what happens when beneficiary dies prior to death of participant. Could be that beneficary designation of spouse is canceled and spouse's benefits are paid employee's estate. Plan documents should provide for death contingencies in event of death of participant.