MR Posted August 25, 2000 Posted August 25, 2000 a participant dies and his 4 kids are the beneficiaries. three of them elect to leave their money in the plan. question is- are these 3 considered participants? if so, they should complete beneficiary forms. if so, must they name their spouses as beneficiaries?
actuarysmith Posted August 25, 2000 Posted August 25, 2000 Not sure that they are required to complete beneficiary forms or not. I don't believe that they would have to, or rather if they did not and were to later die (as they obviously will) then the proceeds would accrue to their estate automatically in the absense of an election form.
david rigby Posted August 26, 2000 Posted August 26, 2000 Not so sure about that. What does the plan say? It is usually a good idea to have an affirmative beneficiary designation rather than using "the estate" as the default. Notice that the employee had such a designation (4 kids). 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.
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