ADP Refund and death

[Guest jvandyke]

We have a client who failed the ADP test. Refunds are due, however one of the HCEs has passed away. Would we calculate the refund due and distribute to the participants beneficiary(s)?

I have been looking everywhere and can not find anything relating to this.

Thanks for any help!

[Jim Chad]

I would vote no on refunding to beneficiary, maybe.

I would refund to the estate of the deceased. Of course, the spouse is often both of these. But the point is the refund is not part of the pan so does not go to the beneficiary.

[Guest jvandyke]

Good point. The beneficiaries are kids, no spouse. It is driving me crazy because I can not find anything relating to this situation. But I do agree Estate would be best choice.

Thank you for your input.