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nonspouse beneficiary


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Guest gregens
Posted

Can a 401k participant name a nonspouse beneficiary without the consent of spouse? Also, does this also apply to Defined Benefit Plans?

Posted

I am not sure if it is a legal requirement or just our plan requirement, but in our plan, the spouse must be the beneficiary unless a spousal consent is signed. I assume it is a legal requirement and would be interested to know where it comes from.

Posted

For a DC plan it depends on whether it is subject to the J&S rules. If the plan does not offer a J&S annuity, then one of the requirements for doing so is that the spouse must be the 100% beneficiary unless they waive it. If the plan is subject to J&S, then the rules for the DC plan are the same as the DB, the spouse must only receive the QPSA, which must be a least 1/2 of the value. They would only have to waive their right to this amount.

Of course what the QPSA is is subject to the document provisions. What is above is the minimum required amount.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

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