Terminated Plan - Participant won't respond

[DP]

I have a PS that terminated 5/31/05. All participants have been paid out except for one new doctor who has a balance of around $42,000. He's going through a nasty divorce and doesn't want to send in his paperwork now. The owner of the practice wants to pay out this doctor and close the plan.

This new doctor only has PS money in his account - no merged MPP money. There is no J&S on the PS money. Can he be paid out without his wife's signature?

If he still refuses to send in his paperwork, is our only option to roll his balance to an IRA?

Help!

[mbozek]

A PS plan exempt from the J & S annuity rules can pay a lump sum w/out the participant's consent upon termination of the plan, Reg. 1.411(d)-4(b)(2)(vi), if there is no other DC plan. You need to check the IRS guidelines to see if the funds must be rolled to an IRA. I don't understand why the divorce will affect his thinking. The PS assets will show up in his financial statements for divorce regardless of whether it is held in a PS plan or an IRA. You need to check the plan to see if spousal consent is required.