Distribution made without spousal consent

[Guest alg_00]

What happens if a distribution is made without spousal consent when spousal consent is required? The plan participant took a distribution from his 457 plan without getting spousal consent. The plan participant has since passed away. Is there any recourse for the surviving spouse?

[Guest mjb]

how was the spousal consent required? Was it a plan provision or is it a statutory requirement?

[John Feldt ERPA CPC QPA]

Check your 457 plan document - see if it actually requires spousal consent (it probably does not). If not, then you should be okay unless the applicable state laws would somehow require spousal consent.

[Guest alg_00]

Check your 457 plan document - see if it actually requires spousal consent (it probably does not). If not, then you should be okay unless the applicable state laws would somehow require spousal consent.

Spousal consent is a statutory requirement. State law requires spousal consent, (1) if the plan participant wishes to name a non spousal beneficiary, and/or (2) when the plan participant takes a distribution from the plan for any reason.

If spousal consent was not obtained prior to the distribution, is there any recourse for the surviving spouse?

[Guest mjb]

You have to check state law to see if there is a remedy for failure to comply with spousal consent. Even if there is a remedy, recovery may not be possible because of the limitations on commencing a law suit or lack of recourse against the beneficiary who received the funds or the employer who did not get spousal consent.

Is this a govt employer plan?

[Guest alg_00]

You have to check state law to see if there is a remedy for failure to comply with spousal consent. Even if there is a remedy, recovery may not be possible because of the limitations on commencing a law suit or lack of recourse against the beneficiary who received the funds or the employer who did not get spousal consent.

Is this a govt employer plan?

City of Dallas is the employer.