distributions upon death

[Guest cjt]

Does anyone know of a reason why a nonqualified pension plan cannot be amended to allow survivors a choice between installments or lump sum payment upon death of the employee? The plan presently only allows for installment payments. They would like to amend the plan to also allow for a lump sum payment and give the survivor a choice. Can the survivor make the choice upon the death of the employee? The way I read the deferral timing requirements of 409A, they only apply to the "service provider". Am I missing something? Any guidance would be greatly appreciated!

[Guest Harry O]

This is still an open question that was not addressed by the proposed regulations. A number of commentators requested clarification on this point. I would wait for final regulations.