What to do when a Human Interest account holder dies

Completed by the beneficiary, with the Plan Sponsor (the employer) signing. Sent by the institution on request.¹

The account is fully vested at death: "Human Interest's plan document provides that in the event of death, the decedent's account is 100% vested." The beneficiary receives the whole balance valued on the distribution date, less any outstanding loan; several beneficiaries split it by the election's percentages.¹

If the deceased person had left the employer, a small vested balance may already have left the plan after a 30-day notice: to a Human Interest IRA (announced by email from Human Interest), to a Matrix Trust IRA (a mailed welcome packet from Matrix Trust or IRALogix), or as a check.¹

If no election is on file, "the beneficiary is first the spouse, then if not living, any children, then if not living, the participant's estate." Marital status is read from the death certificate.^{1, 2}

If the election names someone other than the spouse and the deceased person was married, the employer asks Human Interest whether a notarized spousal consent form is on file. If not, the fallback order in section 7.04(c) of the Basic Plan Document applies.^{1, 2}

Human Interest IRA payments go out by ACH within 7 business days or by check within 10, per the IRA's own FAQ.³

Human Interest IRAs, which run on a separate platform with their own support team¹

Custody of plan money and Matrix Trust IRAs; its checks are labeled Broadridge, and IRALogix is its enrollment platform¹

Since 2026, Form 1099-R is delivered on the Human Interest dashboard (Documents tab, then Taxes), each as a separate PDF, "typically available by February 10 each year". A separate 1099-R can be issued for each distribution event.¹

In box 7, code 4 is "Distribution to a beneficiary, not subject to 10% penalty" and code L is "Loan deemed distribution due to non-payment", which may be combined with a numeric code.¹

An outstanding 401(k) loan is offset against the balance before anything is paid. A beneficiary "will never be required to pay off any owed balance or interest on a decedent's loan (that is a requirement of their estate)".¹

Human Interest says "The estate of the participant will receive a Form 1099-R for the offset of the outstanding balance," issued in the year of death or the following year depending on the date of death.¹

Human Interest's page says cash is taxable in the year it is paid and carries "mandatory withholding requirements of 20% federal income tax and applicable state income tax".¹

The Special Tax Notice lists "Payments made to a beneficiary after your death" among the exceptions to the 10% additional early-distribution tax.⁴

A spouse beneficiary may roll the benefit into an IRA and treat it as their own or as an inherited IRA. A non-spouse beneficiary may roll it into an inherited IRA.¹

The Special Tax Notice that comes with the distribution form says: "If you receive a payment as a surviving spouse, you have the same rollover options as the participant."⁴

Section 7.07 of the Basic Plan Document lets the Plan Administrator direct payment for a minor beneficiary to the legal guardian.²

A balance forced out as cash is paid by a check from Matrix Trust Company mailed to the address on file, less forfeited unvested contributions, at least 20% federal withholding plus state, and a $125 shipping and handling fee.¹

If the balance was under $125 and no direct-deposit distribution was requested within 30 days, "Your account was closed and the balance was applied toward fees".¹