Death Benefit

[Guest SPOT]

Facts:

Plan Participant dies.

Spouse if the designated beneficiary on most recent D.Beneficiary form.

Spouse is deceased.

Daughter is beneficiary of spouse.

Daughter completed a distribution form requesting a lumb sum payment from plan of participant vested benefit less outstanding loan balance.

My questions are:

Is the beneficiary the estate of the deceased spouse or the daughter?

If the estate, who makes the distribution election?

Who gets 1099ed for the outstanding loan that is "defaulted"

Thanks in advance for any help

[mbozek]

You need to review the plan document to see who is the default beneficary where there is no designated beneficary for an employee's benefits. In the case of an unmarried participant the estate of the part. is usually the bene. The executor or the admin makes the election to receive the benefits.

[david rigby]

Another similar discussion:

http://www.benefitslink.com/boards/index.php?showtopic=15761