QJSA requirements

[Belgarath]

A little discussion going on here internally - I'm taking a poll. Do you believe that QJSA requirements apply to a 1 person plan not otherwise subject to Title I of ERISA? Specifically, see Treasury regulation 1.401(a)-20, Q&A 3(d). Thanks.

[Bird]

Yes

[Guest Eric A]

I say yes as well.

[Guest Sieve]

IRC Section 401(a)(11) applies to all tax-qualified plans, ERISA notwithstanding (i.e., whether or not ERISA Section 205 is applicable to the plan).

[Peter Gulia]

The next step is to consider whether the plan sponsor wants to preclude annuity payments. If so, a plan would provide a death benefit to a surviving spouse, but would not allow a participant to choose a QJSA or any kind of life-contingent annuity.

[Guest Sieve]

My assumption all along was that the OP was addressing a non-pension plan, since the QJSA requirements do not apply to a straight PSP/401(k) if, as Peter says, spouse takes 100% at death and the participant does not choose an annuity (or, if an annutiy is not available). However, QJSA requirements always apply to a MPPP & DB.

[Belgarath]

I apologize to all for the incorrect reference - typing with all these thumbs isn't easy. I meant 3(a) rather than 3(d). So the question really should have been more focused - is a 1-person money purchase plan subject to QJSA? And it seems clear that it is. Thanks for your comments.