 Beneficiary Designation |
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 May 1 2008, 01:03 PM
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#1
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Registered User Group: Registered Posts: 299 Joined: 5-December 01 Member No.: 8,537  |
Does anyone know why the spouse of a married participant is automatically the primary beneficiary of 100% of the participants benefit under a plan not subject to QJSA?
I assume this is because the normal form of benefit is a lump sum. |
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May 1 2008, 01:44 PM
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#2
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Registered User Group: Registered Posts: 893 Joined: 17-May 05 Member No.: 14,641 |
QUOTE (Dougsbpc @ May 1 2008, 12:03 PM)  under a plan not subject to QJSA? Depending on which type of plan you're referring to, it's not so much that the plan is not subject to QJSA but rather that it meets an exception to QJSA thru certain requirements. Under 401(a)(11)(B)(iii) one of those requirements is that "... the participant’s nonforfeitable accrued benefit ... is payable in full, on the death of the participant, to the participant’s surviving spouse ..." So in the case of a DC plan (other than a money purchase plan), it's by meeting the exception to the QJSA rules that the spouse is the automatic 100% bene. -------------------- "He attacked everything in life with a mix of extraordinary genius and naive incompetence, and it was often difficult to tell which was which." - Douglas Adams (last updated: 10/12/09)
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May 1 2008, 01:46 PM
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#3
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Registered User Group: Registered Posts: 2,138 Joined: 23-July 06 Member No.: 16,532 |
Because the exception to QJSA requires it.
ERISA, Title I, § 205(b)(1)©(i) and IRC § 401(a)(11)(B)(iii)(I) -------------------- John Simmons
jsimmons@ida.net Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation. |
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May 1 2008, 01:54 PM
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#4
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Registered User Group: Registered Posts: 299 Joined: 5-December 01 Member No.: 8,537 |
Thanks a million masteff and J Simmons!
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