No Beneficiary Designation On File

[waid10]

Hi. We have an employee that died recently. He does not have a beneficiary designation on file. He is divorced with two children. Our 401(k) plan doc states that absent a designated beneficiary, his account is distributed to a surviving spouse (which there is none), then to children (there are two), then to parents, then to the estate. It appears then that we should distribute to the two children (which are adults).

But he also has a 403(b) account. That plan document says that if there is no beneficiary designated that the account is distributed to the surviving spouse, and if there is none, then to the estate.

So it seems that the two plan docs are not consistent. Can someone fill me in? What does the law say on this? I have looked in 401(a)(9) but haven't found anything helpful.

Thanks.

[QDROphile]

The law says to follow plan terms unless the plan terms are contrary to the law.

[ETA Consulting LLC]

The law says to follow plan terms unless the plan terms are contrary to the law.

Pushing the "LIKE" Button. Just follow the terms of each plan. No need to look to do anything differently.

Good Luck!

[david rigby]

Just follow the terms of each plan. No need to look to do anything differently.

There might be something to learn here for the future.

[Peanut Butter Man]

Agree. Due to some of the recent court cases in this area, earlier this year we decided to do an internal audit checking beneficiary forms in all of our plans, and have started a project to update all beneficiary forms for all participants in all of our plans by the end of the year. Our goal is no more participants dying without a beneficiary designation on file.