As a follow up to my earlier post I was able to get the nut out. Here's how:
1. At harbor Freight I bought 2 things that I thought would work.
A. a flexible drier vent brush and a flexible finger style pick up tool.
2.I Trimmed the brush until it was about 1/2 in. diameter and then removed the pick up claws, using JB weld I glued a magnet where the claws were. I had to remove the starter then used the brush to push the nut to the oil drain hole. Then used the magnet to catch the nut and pulled out through the front starter hole.
Thank for all the great ideas I received to get it out. Steve

Very clever, I especially like the brush idea, thanks for sharing, jb

Glad you got it out! Take a good look at your starter and Bendix before re-installing them, better to catch something now rather than later.

Well, you can now call yourself a "Veteran Fisherman" !!!

Congratulations Steve on the big catch. I had my transmission stuffed with rags on the sides BUT fumbled the nut and it went down through the only space without rags! Now I stuff the WHOLE transmission with rags. Tried using the dental floss trick but found it can be cut threading the nut on before it actually engages and risk dropping.