Guest aprilk1 Posted January 17, 2003 Posted January 17, 2003 I made a mistake in my previous question. Is the spouse of a participant in a 401(k) plan that provides for a QJSA required to consent to a loan to the participant spouse in front of a notary or a plan representative?
MWeddell Posted January 17, 2003 Posted January 17, 2003 If the plan document (or written loan procedures incorporated into the plan document) provides for the spousal consent, then it's required. It is possible for the plan not to require spousal consent if this the normal (or default) form of payment is not an annuity, then the QJSA rules only apply to the participant once the participant elects to receive a distribution in the form of an annuity. Hence, at the time of the loan, the QJSA rules aren't (at least yet) applicable and no spousal consent need be required.
austin3515 Posted January 17, 2003 Posted January 17, 2003 The Plan document should indicate whether apsousal consent is required for the loan. Foir example, I have a client with a money purchase plan, and prior to approval of a loan the plan document requires that spousal consent be required. Austin Powers, CPA, QPA, ERPA
Tom Poje Posted January 17, 2003 Posted January 17, 2003 this all reminds me of an interesting story. the lady went into the Credit Union to get a loan, but was told she couldn't get one because there was an outstanding loan. since she didn't know about it, she asked to see the paperwork, and yes, there was indeed a spousal consent signed, though it didn't match her signature. not sure exactly how that story ended up, but....
Guest aprilk1 Posted January 17, 2003 Posted January 17, 2003 Unfortunately, Mr. Poje's story is all too close to the real life scenario that I'm dealing with.
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