Eliminating Optional Forms of Benefit for a Money Purchase Plan

[Guest arasalin]

I am revising a money purchase plan, and the employer wants to remove as many optional forms of benefits possible from the plan. Right now, we have 50% QJSA, 15 year annuity, lump sum, and purchase of an annuity contract as optional forms of benefits. I know that we have to keep the lump sum and the QJSA. The question is, are we required to have a single life annuity form of benefit? If so, where should I look in the regs/Code for authority.

Thanks.

[JanetM]

You have to provide the unmarried participant a life annuity - but you don't have to offer QPSA.

[Guest arasalin]

You have to provide the unmarried participant a life annuity - but you don't have to offer QPSA.

Thanks! Is there anywhere I can cite to when advising the client -- I would guess 401(a)(9), but is there anything more specific? Thanks again!

[JanetM]

IRC 417 covers the QJSA rules. But realize that the regs don't say anything explicitly.