What Happens to My Account After I’m Gone?

Review this information to understand how your account may be distributed depending on your beneficiary designation(s) and the timing of your death.

Beneficiaries

When you enroll in the Plan account, you’re asked to name the individuals and/or organizations who would receive the vested value of your retirement account(s) in the event of your death.

It's important to review your beneficiary information on a regular basis as changes occur in your life, such as marriage, divorce or the birth of a child.

Death without beneficiary designation

If death occurs without having designated a beneficiary, the Plan account is distributed to your surviving spouse. If there is no surviving spouse, it goes to your estate.

Distribution to beneficiaries

Distribution to beneficiaries under the Plan is controlled by the tax rules under IRC 401(a)(9). Under these rules, beneficiaries may elect a withdrawal at any time. If you were an active employee, there is a 45-day waiting period before withdrawals can be made.

Most beneficiaries must take certain minimum annual distributions from the account. The basic rule is that beneficiaries are required to take annual minimum distributions that begin in the year after your death. The amount of the required distribution is calculated by IRS actuarial tables that take into account the age of the beneficiary and the value of the Plan account.

There are two important exceptions to this rule. First, if the beneficiary is your surviving spouse, he or she does not have to take a distribution until the year you would have turned age 70½. The second exception occurs if your death happens before age 70½. For a non-spouse beneficiary, distributions may be deferred as long as five years after your death, but then the entire account must be distributed within five years after death.