SusanKD Posted November 25, 2019 Posted November 25, 2019 A participant died in 2016 without a beneficiary designation on file. As a result, her son is the beneficiary on her $4,600 account. He doesn't want the money. Even if I had his SSN and address, he probably wouldn't cash the check. Also an RMD will be required for 2020. The plan sponsor hasn't been much help, but I did learn that she has a brother. What options are available to distribute the funds?
C. B. Zeller Posted November 25, 2019 Posted November 25, 2019 Remind the son what the "R" in RMD stands for Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
Kristina Posted November 25, 2019 Posted November 25, 2019 Remind the son that if the check is written to him it will be taxable to him for year in which the check is written. He should just accept it. I'm assuming you have determined that the son is, in fact, the beneficiary. Kristina
Lou S. Posted November 25, 2019 Posted November 25, 2019 I agree with Kristina. Send him a check and let him know he will be receiving a tax document for the income whether or not he cashes the check. As an aside the participant died in 2016, when did RMDs begin and can you just pay the beneficiary out under the 5 year rule, assuming no distribution have been done since 2016?
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