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Validity of old QJSA forms post-termination


Guest jam10

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Guest jam10

We are now engaged in terminating a profit-sharing plan for a small corporation. The plan was terminated in April 2001. We received the IRS determination letter on March 1, 2002. Currently, we are preparing a termination package for the participants containing the required tax notices. In the personnel files, we find old signed QJSA waiver forms for some participants. Some of these forms are several years old. Are these old wavier forms still valid? Must a participanct re-excute a QJSA?

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What did the participants waive? The right to a QJSA cannot be waived until 90 days before the retirement date. Did they waive the right to elect the annuity as the normal form? U need a legal interpertation of the waiver and its context under the plan.

mjb

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Guest jam10

Here is a more complete picture. In addition to plan termination, the corporation has dissolved and is no longer in business. The form at issue is the "consent to distribution and qualified joint & survivor annuity waiver form." It waives the participant's right to an annuity with the spouse's consent. The plan requires the participants to make a waiver election no earlier than 90 days before the annuity starting date, but for some strange reason some participants already have the signed form in their file. These forms are likely "premature." I made my query to ensure that there is not an exception or circumstance that allows a participant to make a QJSA waiver election prior to 90 days (1)before the annuity's starting date or, as here, (2) before we make the final distribution of plan funds.

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