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Posted

Say a sole prop dies - has a small 401(k) plan - all assets distributed to beneficiary. Assume plan doc is up to date, and final 5500 form properly filed, and 1099 to beneficiary issued.

Does the executor of the estate itself have any specific duties with regard to filing anything further with regards to this plan/distribution - forms, paperwork, etc.?

Posted

If you want to be hypertechnical the plan should be officially terminated but I doubt there would be consequences to not doing so. 

Ed Snyder

Posted

Generally considered terminated for a sole prop if all assets have been distributed, right? No contributions were due, no other employees, never were.

Posted
44 minutes ago, Belgarath said:

Generally considered terminated for a sole prop if all assets have been distributed, right? No contributions were due, no other employees, never were.

Yes, I think in general a sole proprietor doesn't necessarily have to document actions in writing.  The same would apply to an estate...at least to the extent I'm making all of this up.  ;)

In any event...nothing to worry about, IMO.

Ed Snyder

Posted

Bird, agreed.  Sometimes the square pegs just don't fit into the round holes.

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