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If the spouse doesn't disclaim I think you want to hire a lawyer ASAP, who may be able to force Wells Fargo to freeze the account and not make any distributions to the spouse. It is quite likely that the state law involved here would say that the spouse has no entitlement to the IRA as a result of the pre-nup.

Speaking as a non-lawyer: It is a known fact that a pre-nup release is not sufficient to stand as a spousal waiver in a pension plan subject to the Qualified Joint and Survivor Annuity requirements. When the spouse signed the pre-nup, he or she did not have standing as a spouse to be able to waive spousal rights under the pension plan. Only a spouse can validly waive spousal rights. If the second wife considers herself honor-bound to act in accordance with the pre-nup and signs a disclaimer form, that would be likely sufficient to resolve the issue.

Thanks. I think one of my additional sources of confusion is HEALTH FSA's vs., say, a DEPENDENT CARE FSA. Different rules and limits, I believe. Hooyah! More fun. Starting from scratch on cafeteria plans, etc. gives me a little more appreciation on how challenging it must be for someone starting out in qualified plans, when they have no background with them. It takes a while to even build up a proper frame of reference, so that you can match up the right questions with the right answers, rather than matching up the right answers with the WRONG questions...

Gracias. I think I'll try to digest this tomorrow morning when I'm fresh.