Financial Information
What happens to a 401k plan if the person passes away before retirement?
Question : What happens to a 401k plan if the person passes away before retirement?
My mother passed away 4 years ago, and I just remembered that she had a 401k plan because it was listed on her paycheck statement (I’m assuming she had the plan, why else would it be on there with an amount next to it right?). Well what happens to that saved up money? Does the company keep it or they just let it float around? I only ask because if anything it’s still my mothers money and technically would belong to her family…so how would one go about claiming it?
401k plan
Best answer:
Answer by candy7
Check with the company. At my company you have to list a beneficiary on your 401K plan.
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#4 written by money_locater 1 year ago
You mother SHOULD have named a beneficiary of the account. The plan custodian should have contacted that named beneficiary to begin the process of transfer the money to the beneficiary.
Contact your mother’s former employer and ask what firm was the custodian. Then contact the custodian. Have account numbers ready.
This all should have taken place shortly after her death and certainly by the time her estate was settled. Perhaps you mother had debts to pay (hospital bills) and the money went for those expenses as directed by the probate court.
Check with the executor of your mother’s estate too.
Good Luck
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#6 written by The Kid 1 year ago
as an heir, you are entitled to the $ …she should still have an account at the firm who managed the accounts for her company (eg. fidelity, jpmorgan, schwab, etc.) and I would contact her employer to get the information. Be prepared to have to provide proof of who you are, your relationship to her, proof of her death, etc. before they will give you any info…good luck
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When you die your beneficiary is entitled to your entire account balance. Typically, your spouse is the beneficiary unless you elected otherwise on a form provided by the administrator of the 401K plan; your spouse must consent to this change. Someone needs to notify the plan administrator of your death and learn the specific steps required to claim the balance in your account. Like all other financial matters this can become complicated depending on all of the details related to your mother’s estate. But, overall, the account does indeed belong to some person or person in your family. And you should be able to get the balance without an act of Congress.