Spousal Consent Question

[Guest Karen Miller]

We are the TPA on a 401(k) Plan who has a terminated participant who has requested distribution of her account. She has been separated from her husband for more than a year and she said he refuses to sign the Spouse's Consent. Her account consist of her 401(k) contributions and a rollover from a prior plan. The Plan Document states payment to terminated participants are made in the form of a lump sum. The amount of her distribution is about $5,500. Is the Spouse Consent required for this?

She said she had a legal separation drawn up, but he would not sign it.

Thanks for any help

KarenM

[david rigby]

Does the Plan require a spouse signoff?

[rcline46]

Also, what does the plan say about rollovers and the $5,000 limit - included or excluded. If excluded and the remaining account balance is under $5,000, likely no spousal consent needed.

[Bird]

If distributions are lump sum only, no annuities, spousal consent is not needed (and you shouldn't be asking for it).

[Guest Sieve]

Even though, as Bird points out, spousal consent for a 401(k) loan is not required by law, it would be needed if plan provisions require it.

Probably, therefore, the only plan exception to spousal consent in this circumstance is if the spouse cannot be located. You're out of luck (unless the plan is amended).