Plan document or Will?

[DMcGovern]

If a participant in a 401(k) plan dies without designating a beneficiary, I know that you would follow the terms of the plan to determine the beneficiary. What happens if someone else is named in the participant's will as beneficary of his/her 401(k) balance?

Thanks for your help!

[QDROphile]

The plan looks to itself only, including QDROs.

[ETA Consulting LLC]

The plan's language may designate the participant's estate as beneficiary. In such instance, it is no longer a qualified plan issue. You "may" argue that the will applies to the estate, and then have the estate pay those proceeds to the intended person (as designed by the will). Just something to look into, because I think we all agree that the terms of the plan will govern.

Good Luck!

[masteff]

You plan documents may also specify the proper manner to make a beneficiary designation. Ours stated that a beneficiary designation was only valid if completed on the proper form and if properly received by the plan administrator (ie the Benefits Department). We wouldn't have cared if a document was witnessed by the President and notarized by the Chief Justice; if it wasn't on the right form and properly submitted, we rejected it. And I wouldn't open the can of worms of accepting a will as a beneficary designation. You didn't receive it from the participant. What's to keep you from then having to accept every ad hoc beneficiary designation that an heir pulls out of the bottom of some drawer.