ADP Refund for deceased participant

[buckaroo]

I have a plan where an HCE died in 2013 and during 2013 the account was transferred to his beneficiary's (spouse) account under the plan. When the 2013 ADP test was run in 1/2014, the deceased ptp was due a refund because of the failure of the ADP test. My question is how is this amount distributed and how should the 1099R be coded?

Does the corrective distribution get withdrawn from the beneficiary account and paid to the participant's SSN and taxed accordingly? Or does the corrective distribution get withdrawn from the beneficiary account and paid to the participant's estate and taxed accordingly? Since the beneficiary is his spouse, does the corrective distribution get withdrawn from the beneficiary account and paid directly to the beneficiary and taxed accordingly? Or some other way?

Any help is greatly appreciated.

[Lou S.]

See page 7 of IRS instructions to Form 1099-R - "Failing the ADP or ACP Test after a Total Distribution"

http://www.irs.gov/pub/irs-pdf/i1099r.pdf

[jpod]

Buckaroo, did you ever figure this out?  I have that exact scenario.