Jose Valentin worked hard throughout his life, both in the Air Force and in law enforcement.
Most recently, the Brooklynite was a dispatcher for an armored car company for 15 years until pancreatic cancer suddenly cut his life short in 2021.
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“My dad, he worked his butt off,” Jose’s son, Allen Valentin, told WABC’s investigative team 7 On Your Side. “It’s like my dad put in his time for the city, for the state and also for the country.”
The Valentins suffered a terrible loss, but little did they know that things were about to go from bad to worse.
Following Jose’s passing, the Valentins found themselves locked in a four-year battle to gain access to the $26,535 that Jose left for them.
Fighting for a 401(k)
Allen takes care of his grandmother full-time and also helps out his mom, Esperanza.
“I feel like it’s part of my duty as the eldest,” Allen told 7 On Your Side, crediting the work ethic and big heart that he inherited from his dad as motivation for putting his family first. “He was the one who had to provide for her and for all of us.”
When he passed away, Jose reportedly left behind a 401(k) worth more than $26,000, but Allen has been unable to access the money because Rapid Armored — the company that Jose worked for — failed to send the correct documentation to get the funds released.
“He worked with them for almost 15 years and it’s like they don’t want to lift a finger,” said Allen.
Meanwhile, Esperanza is in dire need of the money in her late husband’s 401(k).
“I feel very bad, because I need that money,” she said. Without it, maintaining the family home in Brownsville, Brooklyn — which has been in the family for generations — may be impossible.
Desperate for help, the family called 7 On Your Side’s Nine Pineda, who then contacted Rapid Armored. And while the company had no comment, the funds within Jose’s 401(k) were finally delivered in full to the Valentin family within three business days.
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This situation is all too common
Unfortunately, the Valentins are not the only American family struggling to access a deceased family member’s retirement funds in a 401(k). As USA Today reports, sometimes 401(k) accounts are lost or forgotten.
“People who are leaving a job, and especially if they’re moving to another one, usually have a bunch of things going on,” David John, senior strategic policy adviser at the AARP Public Policy Institute, told USA Today. As John explains, it’s not all that difficult for someone who’s worked at a company for just a year or two to lose track of their 401(k) after transitioning to another job.
According to Capitalize, a fintech company that helps consumers find and consolidate retirement savings, there were 29.2 million forgotten or left-behind 401(k) accounts carrying approximately $1.65 trillion in assets as of May 2023.
If your parent worked at a company several years ago but there doesn’t seem to be any record or correspondence related to a 401(k) with that employer, then you may be facing this situation. Finding these assets can be a lot of work, but a good place to start is the National Registry of Unclaimed Retirement Benefits.
Another common reason why some people can’t access a deceased parent’s 401(k) is that a beneficiary wasn’t designated for the plan. In this case, the funds can go into probate — a legal process for validating a will and distributing the deceased person’s assets.
Probate laws vary by state, but this can be a complex, costly process that often takes months or even years to complete — and it can be further complicated and extended if someone challenges the will.
When beneficiaries are designated, it’s not uncommon for a beneficiary trying to access the account to submit inaccurate or incomplete documentation. To access the 401(k), you’ll need copies of the death certificate, legal identification and the correct Social Security number for the account, among other information.
Of course, sometimes errors or delays can happen with financial institutions. If that’s the case, confirm that the financial institution has received everything it needs and follow up regularly.
An advisor can help — before and after death
If you’re going through a situation similar to what the Valentins have experienced, a financial advisor or an estate attorney may be able to help.
For example, after a loved one has passed away, an advisor can help ensure that all requirements are completed accurately, as well as take care of administration, communication and advocacy during what is likely a difficult time for you.
But these advisors aren’t just useful for cleaning up a messy 401(k) situation. To ensure your loved ones are taken care of, working with a financial advisor or an estate attorney to prepare your estate can also help the process run more smoothly for your family when you pass away.
For example, an advisor or an estate attorney can help you locate forgotten or missing retirement funds, outline clear beneficiary instructions and make sure all documentation is complete and accurate. They’ll also keep all necessary information on file for when your family needs it.
Dealing with estate matters can be difficult and uncomfortable, but it’s necessary to ensure your family is able to inherit your legacy in the way you intend.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.