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Beneficiary options


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Guest Theresa
Posted

We have a client who has a 401(k) plan and one of its participants is a retired man whom is up there in years, he has named his child as his beneficiary. What are that childs options for receiving his money in the event of his death? Is the only option a lump sum distribution?

Posted

The options would be governed by the terms of the Plan.

Many 401(k) plans have a lump sum as the only available option.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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