- 1). Call the 401k plan administrator at the number located on the statement. Explain that you want information on a death claim. Provide the account or employee information and confirm that you are the intended beneficiary.
- 2). Ask the representative what the distribution policy is for death benefit claims. Some 401k administrators don't give beneficiaries all options allowed by the Internal Revenue Service and automatically send a lump-sum distribution to save on administrative costs.
- 3). Obtain the death claim form from the 401k plan administrator.
- 4). Take any required minimum distributions prior to determining distributions. If the deceased was already 70 1/2 years of age at the time of death, the required minimum distributions must be taken out and added to the final tax return of the deceased as income.
- 5). Fill out the death claim form with pertinent account information. Make the proper beneficiary designation if offered to you. The Internal Revenue Service allows lump-sum distributions, deferred distributions that liquidate the entire account by December 31 of the fifth year after the owner's death. Surviving spouses may elect to roll over the money into a personal IRA or continue the 401k as their own. Another option available to beneficiaries is rolling the assets into a beneficiary IRA.
- 6). Complete the form in its entirety and include a death certificate when sending the paperwork back to the 401k administrator. Wait for the check or funds transfer.
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