Rollover of death benefit by domestic partner

[Guest Bud]

Deceased participant was in a same-sex marriage. Participant's enrollment form indicated he was married. Spouse is the designated beneficiary.

Should we allow a rollover? I assume the designated beneficiary's tax return will indicate single. Wouldn't a rollover of a death benefit by a single person or "non-spouse" trigger some kind of flag with the IRS?

[mbozek]

Since no state recognizes same sex marriage at this time I dont see how there could be a rollover by the bene. Also, under the defense of marriage act, the definition of spouse under any provision of federal law is a member of the opposite sex.

[Guest Bud]

Great. Now my plan and company will get dragged into the debate in the papers and will become the test defendant in Northern California District Court.

[mbozek]

Why not ask the beneficiary for a valid marriage certificate? No certificate, no eligibility for rollover. Also the lawsuit would have to be brought against the IRS because IRS rules do not not allow the rollover of benefits by persons who are members of the same sex as the deceased owner.

[jsb]

In CA California Family Code section 300 defines marriage as being between a man and a woman. Not possible for a man to be a spouse of another man under CA law.

As is currently posted on the Cafeteria Plan board regarding medical reimbursement, federal law would in any event override CA state law as the plan issue is governed by IRS regs. In this case, however, Fed law also defines marriage as between a man and a woman.