Collecting the Benefits You're Due
Employment benefits such as pensions, retirement plans, and privately owned annuity contracts can often be paid to you in a lump sums or in regular payments. Take your time deciding which payment schedule works best for you and your beneficiaries.
Spouses are allowed to transfer retirement plan assets such as 401(k)s and IRAs directly into an IRA that they own. Other nonspouse beneficiaries may roll over funds to an inherited IRA or beneficiary IRA and take distributions over their lifetime if the original investment company allows it. Check the plan document at the investment company to research your options.
Pensions and Retirement Plans
Company pensions are usually available in a lump sum payment that can be transferred to an IRA if the worker hasn't already started taking payments. Contact the employer's human resources department for help with the distribution. If the pensioner was already receiving payments, she may have chosen a benefit amount for you as her spouse. The employer will send a letter letting you know what your benefits are.
Can I continue under my late husband's health insurance, or do I need to buy a new plan?
You need to contact your husband's employer within thirty days of his death. You should be eligible for COBRA health insurance coverage for thirty-six months.
Annuities
Private annuity contracts give the owner the option to designate a beneficiary. The beneficiary can choose whether to take regular payments, interest, or a lump sum from the annuity. In most cases, at least part of this payment is taxable as income to the beneficiary, so it's important to have finished at least a rough financial plan and have spoken to a planner or accountant before deciding what type of benefit to choose.
