MRD FOR DECEASED PARTICIPANTS IN A 401(K) PLAN.

[Guest gerald3]

IN A 401(K) PLAN, WHEN A PARTICIPANT DIES PRIOR TO RECIEVING THEIR MRD FOR THE YEAR, SHOULD THE MRD BE PROCESS AND MADE PAYABLE TO THE BENEFICIARY, THEN PROCESS ANOTHER DISTRIBUTION TO THE BENEFICIARY FOR THE REMAINING AMOUNT?

[Guest abrandw]

MRD for the year of death, if not paid before the employee's death, is paid to the designated beneficiary. The remaining account balance must be distributed over the longer of (1) the remaining life expectancy of the designated beneficiary, or (2) the remaining life expectancy of the employee. See Q & A-5(a) of Regs 1.401(a)(9)-5. If the beneficiary opts for a lump sum distribution in the year of death, then it appears to me that you could just do one check for the full account balance.