Multiple Beneficiaries Primary and Contingent

[TBob]

A participant in a 401(k) plan names two primary beneficiaries for their account, his sister 50% and his brother 50%. The participant also names two contingent beneficiaries for their account, niece 50% and nephew 50%.

At the time of the participants death, his brother is already dead. Does the remaining primary bene, his sister, receive the full 100% of his account or does the brother's 50% fall to the contingent beneficiaries?

Does the answer to this question hinge at all on how the beneficiary form were completed? For instance, had the participant indicated on the beneficiary form "my brother and my sister in equal shares" rather than specifically giving each one 50%?

[GMK]

Check the plan document regarding whether the off-spring of primary beneficiaries who pre-decease the participant are considered.

Generally, contingent beneficiaries are considered only after all primary beneficiaries are gone.

And "equal shares" generally means that surviving primary beneficiaries split the benefit equally. You usually need additional words in the beneficiary designation to bring off-spring into the picture. But again, check the plan document.

[masteff]

I'd also review the form on which the designation was completed as its wording can be binding upon the designation.

Per stirpes and per capita are the two phrases generally included when it's intended that a primary beneficiary's children inherit that bene's share.