Plan Termination Distribution

[Guest Kevin1]

A client is terminating their 401(k) plan (two principals and three employees). We want to distribute all assets and finalize it prior to December 31, 2009. One participant is going through a disolution. Her husband is being completely uncooperative. He's uncommunicative, doesn't pay his attorney, etc. My thought is to issue the necessary paperwork for her make an election, however since the husband won't sign off, there will be an involuntary rollover to an IRA. Any other options?

[jpod]

Why is spouse's signature necessary? Regardless of the reason, if the plan requires spousal consent, what does the plan say will happen if the spouse does not consent? Presumably it says that a 50% or greater j&s annuity will be purchased and distributed. I doubt very much that the plan language would allow you to do a mandatory rollover.

[david rigby]

What elections are permitted under the plan? lump sum in cash? lump sum as rollover? anything else?