DTH Posted April 30, 2004 Posted April 30, 2004 I inherited a plan that has a 10-year certain and life as the normal form. The QJSA for a married participant is 50% J&S and the QJSA for an unmarried participant is a "10 year certain and life". There is no life annuity available under the plan. It is my understanding that a QJSA for an unmarried participant must be a single life annuity (Treasury reg. 1.401(a)-20 Q&A 20). Am I correct that the plan must offer a single life annuity for unmarried participants as the QJSA? The 10-year certain an life can be an optional form of benefit offered under the plan. Thanks.
Mike Preston Posted May 2, 2004 Posted May 2, 2004 I would be very surprised if the IRS didn't qualify a plan that provided for QPSA that is greater in value to the regulatory QPSA. If you've got an LOD I wouldn't worry. If you don't have one, I would consider getting one.
david rigby Posted May 2, 2004 Posted May 2, 2004 I think it is Q&A 25. Mike's comment is the most practical. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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