Death before distributions begin

[k man]

participant died with a designated beneficiary. plan says that the benefit must be paid out by the end of the plan year following the date the participant died. my question is as a practical matter how do you facilitate this distruibution? how do you force the participant to complete distribution paperwork?

[david rigby]

how do you force the participant to complete distribution paperwork?

Difficult, since he is dead.

[Guest mjb]

Plan does not need consent of bene to pay distribution. Bene should complete app and take distribution and see if rollover can be made to IRA.

[k man]

pax good catch. i meant beneficiary.

[k man]

Plan does not need consent of bene to pay distribution. Bene should complete app and take distribution and see if rollover can be made to IRA.

ok so my question is this. do you just send the money to the beneficiary? do you ask them to fill out rollover form? trying to figure how to do this from a technical standpoint.

[Guest mjb]

isnt the answer dependent on what options are available? If the bene requests payment doesnt the plan require that a distribution form be completed in order to paid? If bene wants a rollover to an IRA doesnt he have to complete a form designating the IRA custodian to whom the distribution will be directed?

[J Simmons]

Send the death bene an election form setting forth any options he or she may have under the plan (e.g., direct rollover to an IRA), as well as any notices that may be required by reason of such choices, explain that by default payout will be made in a lump sum payment directly to him or her if no response is received 30 days hence. If no response, send him or her a check for the lump sum.

[Guest mjb]

isnt the answer dependent on what options are available? If the bene requests payment doesnt the plan require that a distribution form be completed in order to paid? If bene wants a rollover to an IRA doesnt he have to complete a form designating the IRA custodian to whom the distribution will be directed?

[k man]

isnt the answer dependent on what options are available? If the bene requests payment doesnt the plan require that a distribution form be completed in order to paid? If bene wants a rollover to an IRA doesnt he have to complete a form designating the IRA custodian to whom the distribution will be directed?

of course, but my beneficiary might not do anything. that is the gist of my question. ie. what can the plan sponsor do without his consent? jsimmons seems to have answered it.