What to do when a Vestwell account holder dies
Report the death to Vestwell's Saver Support at 1-917-979-5358 ext. 1
When an account holder at Vestwell passes away, the next step depends on how the retirement accounts were set up. Accounts with beneficiary designations or trust ownership transfer outside of probate. Accounts titled solely in the deceased's name require the estate's legal representative to work with Vestwell's Saver Support (1-917-979-5358 ext. 1) to access and distribute the funds.
Death claim process
To file a claim after an account holder's death, here is what Vestwell requires:
Filing a claim
- Vestwell provides the distribution form, which varies based on the plan, relevant state law, and the nature of the beneficiary(ies) on the account
- Funds are distributed once all the forms are returned in good order
- If the plan uses a Third Party Administrator (TPA), the TPA may be responsible for reviewing and approving death benefit distributions, and additional time and/or documentation may be needed
- The form lists 1410 Broadway, 23rd Floor, New York, New York 10018 as an address for questions
Required Documents
- Copy of the participant's death certificate
- Proof of identification for each beneficiaryA copy of the front and back, such as a driver's license or passport.
- Completed distribution form for each beneficiary
- Copies of the participant's notarized spousal consent formMay be required.
- Proof of the appointment of an executor, if the estate is the beneficiaryMay be required. An official copy of the Letter of Appointment or the local court equivalent, with a visible or raised court seal.
- Additional information, if a trust, a nonprofit organization or a minor child is named as beneficiaryMay be needed.
- Notarized beneficiary signature on the Beneficiary Distribution Request Form, for distribution payments in excess of $25,000.00
- IRS Form W-9 or Form W-8BEN, if the distribution will be sent to an address outside the United States
Forms Vestwell issues1
What happens to each kind of account1
- Employer retirement plan
Beneficiaries may be individuals, a trust, an estate, or a nonprofit organization.1
If no beneficiary is designated, Vestwell states that local law decides who inherits the plan balance. Where the plan document spells out who inherits, it follows the Plan Administrator's directions; usually the plan document requires distribution first to a surviving spouse.1
What Vestwell's agreement and guidance say3
- How proceeds are paid
Vestwell's Beneficiary Distribution Request Form states that if the vested account balance is $1,000 or less, the distribution can be received only as a lump sum payment.3
The form states that non-spousal beneficiaries may only roll over to an IRA and can only elect installments that end within 5 years of the participant's date of death.3
- Fees
The form states that the account is charged a distribution fee, and that if the vested account balance is below that fee amount no payment is made.3
- What it says about taxes
The form states that payments to beneficiaries such as trusts or charitable organizations have 20% withheld for federal income taxes, and that a distribution sent to an address outside the United States without an IRS Form W-9 or W-8BEN has 30% withheld.3
Not in Vestwell's published guidance1
- A mailing address for claim documents
Direct deposit is processed within approximately 10 business days after Vestwell receives all required documentation.
Vestwell's Saver Support can be reached by phone at 1-917-979-5358 ext. 1 and email at help@vestwell.com for questions throughout the claims process.
Sources
Data sourced from Vestwell primary sources (28 pages reviewed). How we research.
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