Annuity Starting Date

[chris]

What is the annuity starting date in following situation under the following facts??

1. Corporation dissolved on date X;

2. Corporation X froze PSP and MPPP prior to dissolving;

3. Prior to freeze the two participants executed waivers (with spousal consents) of the QPSA with respect to MPPP;

4. 5500's have been filed annually since the freeze and the plan documents have been kept in compliance;

5. Participants elected to not take distributions from the plans;

6. Request for Determination Letter filed with respect to termination of both plans as of 4/1/99;

7. Both participants have been taking required minimum distributions.

The issue is that the IRS Specialist reviewing the 5310's wants to know if the spousal consent requirements of 401(a)(11) have been met. 417(f)(2)(A)(i) defines "annuity starting date" as "the first day of the first period for which an amount is payable as an annuity." My initial thought is that the "annuity starting date" has not rolled around yet. The participants have not consented to nor directed that their account balances be distributed. It would appear that the QJSA notice/waiver/consent forms would need to be provided within the appropriate time period before the date of distribution of the assets on termination.

Has the plan administrator missed the boat on failing to provide QJSA notice/waiver/consent forms earlier, or has the annuity starting date not yet arrived???

Any comments/suggestions appreciated...

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[david shipp]

Commencement of minimum distributions would generate an annuity start date. Spousal consent should have been obtained if QJSA requirements applied.