Vlad401k Posted May 29, 2015 Posted May 29, 2015 If the participant dies (has no spouse, kids, and the document states that the distribution to the participant's trust is the default distribution in such a case), which distribution code should be used in such a case? Code "4"? Does the mandatory federal (and state, if applicable) tax withholding apply?
Bird Posted May 29, 2015 Posted May 29, 2015 If it is payable to a trust then it is not eligible for rollover, so no mandatory WH. Code 4. Ed Snyder
Vlad401k Posted June 4, 2015 Author Posted June 4, 2015 Can a death distribution be done to a "Revocable" trust of the deceased participant or does it have to be "Irrevocable"??? I've read some sources that state it must be Irrevocable, but can't verify with the ERISA books.
K2retire Posted June 4, 2015 Posted June 4, 2015 Once the grantor dies, the revocable trust becomes irrevocable.
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