QPSA in a Money Purchase Pension

[Guest gaham]

I am reviewing distribution forms prepared by a TPA for a Money Purchase Pension plan and the forms do not include any explanation or waiver of the QPSA. I have always been under the impression that if the participant and spouse wish to waive the QPSA and designate a nonspouse beneficiary under a money purchase plan all of the notice and waiver rules must be met. In looking back over the 1.401(a)-20 rules though I see that a QPSA in a defined contribution plan is considered "fully subsidized". A-38(B). Also, A-35(a) could be read to say that no written explanation of the QPSA is necessary as long as the QPSA is fully subsidized. On the other hand A-37 seems to clearly require proper notices where the plan allows the waiver. Would appreciate any comments from anyone who may have delved into this lately. Thanks.

[imchipbrown]

I would imagine that you're looking at the wrong form. We usually include all the information you're referring to with the materials for Designating Beneficiaries.

On termination, we give out the IRS boilerplate and an explanation of the Joint & Survivor annuity, as well as other options available.