Spousal Consent

[JKW]

If a participant is taking a distribution from a 401k plan and the plan does require spousal consent but the balance is under $5000.00 does the participant have to get a spousal consent?

[austin3515]

Spousal consent is tied to the automatic cash out thresshold, barring some sort of language to the contrary which you probably will not see in a prototype document.

[WDIK]

How can you avoid following the terms of the plan? (But as Austin points out, are you sure about what the plan requires?)

[Kevin C]

Participant consent to a distribution is tied to the cashout level. Spousal consent to a distribution is part of the QJSA rules. If the plan is subject to the QJSA rules, it probably says no spousal consent is needed unless the vested balance is > $5,000. If the plan is not subject to the QJSA rules, it probably says no spousal consent is needed for any distribution. As previously noted, you'll have to see what the document says.

[JKW]

Thank you for the info.