Distribution and death

[cdavis25]

A participant was paid out in 2012. It was a lump sum cash payment from a 401(k) plan. The taxes were withheld and a 1099R was completed. The check was not cashed. The participant passed away in 2013.

Are the funds technically in the participant's hands with the check and belong to his estate or should the funds go to the participant's beneficiaries from the plan?

[My 2 cents]

My vote is that it was paid out and the money belongs to the estate. Paid out before death. Not the plan's fault the check was not cashed.

Just being dealt with now?

[cdavis25]

That was my vote too.

Inherited problem...you have to love them like your own.