One of the big parts of my practice is assisting third party administrators (TPAs) who cant or don\u2019t want t afford an ERISA attorney on staff.<\/p>\n
I recently had to answer correspondence regarding the payout of a participant who was deceased and still required to take out the required minimum distribution (RMD). The beneficiaries of the deceased claim that the TPA advised them that they could take the RMD and roll it over. The only problem is that law won\u2019t allow them to do it.<\/p>\n
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The initial response by the TPA wasn\u2019t wrong, it was just full of a lot of jargon that really didn\u2019t fully answer the beneficiaries\u2019 concerns. I helped with the second response and just fully explained that no matter what they were told they could not rollover an RMD because it\u2019s not an eligible rollover distribution.<\/p>\n
Rather than go through a lot of words, it\u2019s just a lot easier to tell them straight and just tell then what they can and can\u2019t do with the deceased participant\u2019s benefit.<\/p>\n
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