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An employer or a plan's administrator might prefer not to provide guidance on this question. Unless one has extraordinary expertise, an answer in either direction has a potential to harm one or more of an individual’s interests. Beyond knowing the law, an adviser would need to know everything about the individual’s other and surrounding circumstances. Under the part 416 rules of the Supplemental Security Income for the Aged, Blind, and Disabled program, the subpart L rules on “Resources and Exclusions” are at 20 C.F.R. §§ 416.1201 to 416.1266. These rules begin at 20 C.F.R. § 416.1201(a) https://www.ecfr.gov/current/title-20/part-416/section-416.1201#p-416.1201(a). Those rules are only a few of many that could relate to the SSI beneficiary’s situation. And one would research too the rulings and other nonrule guidance. And the guidance the Social Security Administration provides for SSA’s employees. For example: https://secure.ssa.gov/apps10/poms.nsf/lnx/0501120210. One also might consider that some SSI provisions might allow SSA to not count some elements of a beneficiary’s income or resources. In my experience, it’s impractical to advise an SSI beneficiary unless one volunteers an uncompensated engagement and can afford to put in substantial time and attention. This is not advice to anyone.

The participant elects the annuity option (or lump sum) prior to their annuity starting state (ASD, or for ease of discussion, their benefit commencement date). A 401(k) plan would have to purchase the annuity from an insurance company. Once that happens, it is done. If a life annuity, it stops when the participant dies. If a J&S then the surviving spouse gets survivor portion. A divorce after the ASD does not change either scenario, nor does it change the (now ex) spouse as J&S beneficiary (if that was elected). There is no more 401(k) account balance or lump sum available. An ex-spouse's only option - unless the insurance annuity contract says otherwise - is a shared interest QDRO that gives the ex a percentage of the monthly annuity payments. For example, say a 50% J&S was elected and ex gets a 50% QDRO award on a $1000/month annuity payment. Participant and ex each get $500/month and then ex continues to get $500/month after participant death as the survivor annuity. If ex dies first then participant should get $1000/month (if QDRO properly drafted). My perspective is from DB plans, which routinely pay annuities from the plans. DC plans cannot pay life annuities so they have to use the account balance to purchase from an insurance company. Maybe those contracts are more flexible than DBPs on QDROs, but I doubt it.

Supports everything Peter was saying.

On September 6, 2000, the Treasury department published a final rule to amend the 1988 rule. Under that amendment, a plan sponsor may amend its plan to remove an optional form of benefit (including an optional annuity) if the plan provides a single-sum distribution form otherwise identical to the optional form of benefit eliminated. Such an amendment must not apply to a participant with an “annuity starting date” earlier than the 90th day after “the participant has been furnished a summary that reflects the amendment and that satisfies the requirements of 29 CFR [§] 2520.104b–3[.]” (I’ve simplified those explanations, and omitted some conditions.) For the details: Special Rules Regarding Optional Forms of Benefit Under Qualified Retirement Plans [final rule], 65 Federal Register 53901-53909 (Sept. 6, 2000), https://www.govinfo.gov/content/pkg/FR-2000-09-06/pdf/00-22668.pdf. Also, the Treasury department published further amendments in 2004, 2005, and 2006. https://www.govinfo.gov/content/pkg/FR-2004-03-24/pdf/04-6220.pdf https://www.govinfo.gov/content/pkg/FR-2005-08-12/pdf/05-15960.pdf https://www.govinfo.gov/content/pkg/FR-2005-09-13/pdf/05-17959.pdf https://www.govinfo.gov/content/pkg/FR-2005-09-27/pdf/05-19222.pdf https://www.govinfo.gov/content/pkg/FR-2006-08-09/pdf/E6-12885.pdf