Death distribution to minor children

[Guest Tom Freeman]

A deceased participant in a 401(k) plan named 2 minors as her beneficiaries. Three questions -- 1. To whom should the distribution proceeds be made payable? 2. How will this be reported on a 1099? 3. Who is obligated to pay any tax on this distribution - the estate , beneficiary, or guardian?

Thanks for all responses!

[Guest Dook]

1. Distribution is to the legal guardian "for the benefit of" the minor.

2. 1099 reports distribution using the name and SS# of the minor.

3. The minor (with help presumably) must report the income and pay any applicable taxes.