What to do when a Sentinel Benefits account holder dies

If no beneficiary designation is on file at the time of a participant's death, the plan document's default beneficiary provisions govern. For most ERISA-qualified plans administered by Sentinel, the default hierarchy is typically the surviving spouse first, then the estate. In either case, the plan sponsor (your employer) is the first point of contact and will work with Sentinel's Service Center at (888) 762-6088 to initiate the distribution process. An estate receiving plan assets may be required to provide Letters Testamentary or Letters of Administration.

Under the SECURE Act of 2019, most non-spouse beneficiaries who inherit a defined contribution plan account (such as a TotalChoice 401(k) or 403(b)) must distribute the entire account within 10 years of the participant's death. Eligible designated beneficiaries — including surviving spouses, minor children of the participant (until reaching the age of majority), disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the participant — qualify for longer distribution periods. Surviving spouses may also elect to treat the account as their own or roll it over to an IRA. For defined benefit and cash balance plans, survivor benefits follow plan terms and may include annuity options.

Nonqualified deferred compensation and executive benefit plans administered by Sentinel are not subject to ERISA's spousal consent requirements in the same way as qualified plans. Beneficiary designation rules are governed by the individual plan document, which may permit participants to freely name any person, trust, or entity as beneficiary. However, these plans are also subject to IRC Section 409A rules governing timing of distributions, which can affect how and when a beneficiary receives assets upon the participant's death. Employers and plan participants should review the plan document and consult a tax advisor.