loans and spousal consent

[Guest friedbrain]

Do loans from 401(k) plans legally require spousal consent? Thanks!

[Guest Bill]

Yes, if it's for more than $5,000 AND the plan is subject to the Survivor Annuity Rules, otherwise no.

[LCARUSI]

I agree with Bill. However, a Plan without Survivor Annuity Rules can require spousal consent (by the terms of the document) even though it is not required to.

[MWeddell]

I agree you've got to read the document and follow what it says.

However, if a 401(k) plan, which is not a pension plan, offers annuity forms of payment, the spousal consent requirement and other QJSA requirements don't become effective until such time as the participant elects an annuity form of payment. If the plan's normal form of payment is a lump sum, not an annuity, then at the time the loan is taken you may not be subject to spousal consent rules even though the plan offers annuity options when a participant takes a complete distribution.