If the deceased had a pension or retirement plan, beneficiaries may be entitled to survivor benefits, death benefits, or account distributions. The process varies by plan type (defined benefit pension, 401(k), IRA, military pension, government pension).
10 steps across 2 sections
1. Steps Process
- Identify all retirement accounts — Check: employer pension/401(k), IRAs, military pension, government pension (FERS/CSRS), union pension, annuities.
- Contact the plan administrator — For employer plans, contact HR or the plan administrator. For IRAs, contact the financial institution.
- Submit claim documentation — Death certificate, beneficiary's ID, plan-specific claim forms.
- Choose distribution option — Options depend on plan type and beneficiary relationship: lump sum, rollover to own IRA (spouse), inherited IRA, installments, or annuity.
- Understand tax implications — Distributions from pre-tax accounts (401k, traditional IRA) are taxable income. Roth account qualified distributions are tax-free.
2. Key Details
- SECURE Act: Non-spouse beneficiaries must distribute inherited IRAs within 10 years
- Spouse beneficiaries: Can roll into own IRA and defer distributions
- Pension survivor benefits: Typically 50-100% of the pension amount if survivor option was elected
- If no beneficiary designated, proceeds go to the estate
- Military survivor benefits (SBP): Up to 55% of retired pay
Pro Tips
- Check if the deceased elected a survivor benefit option on their pension
- Spouse is default beneficiary on most retirement accounts (ERISA)
- Consider tax implications before choosing lump sum vs
- Consult a financial advisor for inherited IRA distribution planning