Beneficiary Designations

[steve-o]

When does a spouse have to give consent for someone other than the spouse to be a beneficiary of a 401(k) plan? I have a situation where the couple is in the process of a lengthy divorce and the husband wants his two daughters to be the beneficiary of his interest in his company's 401(k) plan. It is fairly certain the wife would not want this to take place if she can help it.

Does the wife get first crack at the money while she is still married? And what happens once the divorce is finalized?

[chris]

I would think the spouse would have to give consent in all cases since the spouse is entitled to the death benefit by law. That would generally apply up until a QDRO is put in place and/or the participant and the spouse get divorced pursuant to a divorce decree....

[pmacduff]

It's my opinion that as long as they are still legally married, the wife is the beneficiary and would have to waive her rights in order for there to be a different named beneficiary (i.e., the daughters). Once they are legally divorced, the participant can name anyone he chooses as beneficiary, barring any QDRO to the contrary. Is there a valid beneficiary designation on file at this time? (In answer to your question, "When does a spouse have to give consent...." ALWAYS!)

[Harwood]

If they are legally separated AND there is a court order to that effect, spousal consent is not needed.

[david rigby]

It may also depend on how the plan defines the QPSA.