Pixie Posted November 4, 2015 Posted November 4, 2015 I have wealthy participant that has two individual accounts in the 401k plan. He wants to designate a beneficiary for each account instead of using one form and inputting percentages. Is this allowed?
ETA Consulting LLC Posted November 4, 2015 Posted November 4, 2015 Sure; a form is only a form. You'd just want to ensure the language clearly explains the intent. You'd also want to ensure the all the spousal beneficiary rules are followed in the event the participant is married. Good Luck! CPC, QPA, QKA, TGPC, ERPA
david rigby Posted November 4, 2015 Posted November 4, 2015 What does the plan say? MoJo 1 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.
My 2 cents Posted November 4, 2015 Posted November 4, 2015 Does it matter, for purposes of the question at hand, that the participant is wealthy? As to whether it is allowed, you need to check on both what the plan says and what the custodian/trustee is able to handle. Always check with your actuary first!
SFSD Posted November 4, 2015 Posted November 4, 2015 Why does the participant have two separate accounts? Or are you referring to multiple "buckets" in a single account such as for deferrals, match, Roth, discretionary profit sharing, etc.
jpod Posted November 4, 2015 Posted November 4, 2015 Can you give us more information? Why does the participant or his/her advisor think two forms should be used?
Bird Posted November 5, 2015 Posted November 5, 2015 As long as it is clearly described, I don't see a problem. Could use one form or two forms. Ed Snyder
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