Designated Beneficiary

[Randy Watson]

Could a designated beneficiary be changed after a participant's death?

[QDROphile]

How do you mean "designated"? It could happen for purposes of 401(a) (9).

[RTK]

Who would be changing the beneficiary (and I'll state the obvious that I know it is not the participant)?

Off hand, I can't think of a way of changing the beneficiary designation after the particpant's death. However, the designated beneficiary may be able to disclaim the benefit, in which case the benefit would be paid as if the beneficiary had predeceased the participant. See IRS GCM 39858 generally permitting a disclaimer under a qualified plan by the beneficiary so long as it satisfies 2518 and applicable state law. There are a number of IRS PLRs as well on the tax effect. Note that the final 401(a)(9) regs contemplate a disclaimer under qualified plans.

[RTK]

Good point on 401(a)(9) -- I was thinking of the designated beneficiary to receive the death benefit. Designated beneficiary for 401(a)(9) purposes is different issue. For example, under final regs, a beneficiary who receives a distribution of entire interest by September 30 of calendar year following calendar year of participant's death would not be a designated beneficiary for 401(a)(9) purposes.