We’re sorry to hear that one of our valued participants has passed away. We understand this is a difficult time, and we want to make the process as simple as possible for you. This article walks you through how to claim funds as a beneficiary, what happens if no beneficiary was designated, and how to disclaim an inheritance if you prefer not to receive it.
If you believe you are the beneficiary of a participant’s account, follow the steps below to begin a distribution request. We cannot share any account details until we get the required information and confirm that you are the beneficiary.
Important: Even if you have access to the participant’s 401(k) account, do not sign in. Signing in can trigger security concerns and may cause the account to be locked.
Mail us the following documents:
A certified copy of the death certificate
A color copy of your current government-issued ID (like an unexpired passport, driver's license, or state ID)
A copy of your marriage certificate (if you are the spouse and it is not listed on the death certificate)
A copy of your birth certificate (if you are the child)
If there are multiple beneficiaries, documentation for each beneficiary can be mailed together. Only one death certificate is required.
Some beneficiaries need to provide extra documentation to request a distribution:
Legal guardians for a minor beneficiary: The participant's funds will be disbursed at the direction of the minor's legal guardian. We also require a birth certificate for each minor, and a certificate of guardianship or adoption decree for the minor beneficiary
Trusts: If you are a trust beneficiary or trustee, mail the first page of the fully executed trust
Charities: If you represent a charity designated as the beneficiary of a participant's account, provide the charity's W-9 so we can disburse the participant's funds
Estates: Contact us to determine what additional documentation may be needed
Mail all required documents to:
Gusto, Inc. Attn: Customer Success 1201 16th Street Suite 350 Denver, CO 80202
Once you've mailed your documents, notify our support team at [email protected].
When we get your documents, a Gusto Retirement support representative will review them and confirm your beneficiary status. If you're the verified beneficiary, they will share the beneficiary distribution form with you through DocuSign.
If we determine that you are not the account beneficiary, we cannot provide any information about the account.
If the participant did not designate a beneficiary, funds will be distributed according to the plan document. For Gusto 401(k) plans, the default beneficiary order is:
Surviving spouse
If there is no surviving spouse, then the participant's children (in equal shares)
If no surviving spouse or children, the participant's parents (in equal shares)
If none of the above, the participant's estate
You can choose to give up your beneficiary rights to retirement assets if you prefer not to receive them. However, you only have a certain amount of time to disclaim your interest.
A beneficiary disclaimer is a written document that allows you to decline all or part of your interest to the 401(k) account.¹ As a result, you will be treated as though you predeceased the account owner.
To decline your assets, provide the written disclaimer to the plan sponsor or custodian within nine months of the account owner's death, or within nine months of the date you turn 21 (if applicable). There is no exception to this deadline, even if you did not learn of your inheritance until after it passed.
Important: Once you submit a disclaimer, you cannot change your mind. This disclaimer cannot be revoked.
You want the assets to go to the next named beneficiary
The assets would create tax complications for your own beneficiaries
Accepting assets would push you into a higher tax bracket
Receiving an inheritance would disqualify you from getting certain benefits, like student loans or Medicaid
For the beneficiary disclaimer to be valid, the following apply:
The disclaimer must be in writing
The written disclaimer is received by the plan sponsor or custodian within nine months after the account owner's death, or within nine months of the date you turn 21 (if applicable)
You have not accepted any of the disclaimed assets or any of the benefits attributable to those assets. According to the IRS, the exception to this rule is that if a required minimum distribution (RMD) is due, the RMD amount can be removed from the account, and the remaining balance can still be disclaimed
You are not allowed to direct how or to whom ownership of the assets is transferred. You will be treated as though you predeceased the account owner
¹ See Code Section 2518 and Treasury Regulations 25.2518-2 for additional information.