ADP Excess For Deceased Participant

[Guest Beavis]

Does anyone have an authoritative cite on how to handle a distribution of an ADP excess to a deceased participant? The participant died very recently and his account balance in the plan is still intact.

The plan administrator would like to have the refund check made payable to the spouse (beneficiary).

I believe that the 1099R should be done on the deceased's ssn for inclusion as income on his final tax return. I would like to confirm this. Also, does this create a problem in making the refund check payable to the spouse?

Thanks for any help.

[This message has been edited by Beavis (edited 12-09-98).]

[LCARUSI]

I don't see how you can issue a 1099-R to one person (SS#) and then issue the check to another person with a different SS#.

I suggest you issue both the 1099-R and the check in the name of the deceased (or issue the check to the estate of _______). The check amount would then be included in the deceased participant's estate and the 1099-R would cause it to be included in his or her final tax return.

[Guest Phil L]

That sounds simple LCARUSI, but how will one person cash the check made payable to another? Isn't it likely that the bank won't cash the check?

[LCARUSI]

Phil L -

If the check is made payable to the deceased (or to the estate of the deceased), then I assume the refund amount would become part of the decedent's estate. Couldn't the check be deposited by the executor/executrix and included in the estate?