87 year old participant estranged from wife for 25 years

[Lori H]

A plan participant has a significant account balance in a plan. he is 87 years old and has been estranged from his wife, not divorced, for 25 years. The wife is currently living with another man. The beneficiary of his plan is his estranged wife. He would have to still obtain her signature to designate his sons as beneficiaries, correct?

[ETA Consulting LLC]

You are correct. What he could do (assuming PS plan with QJSA exemption) is roll the plan assets over into an IRA where he is free to choose his own beneficiaries. Too many people are unaware of the simple provision you are discussing; to become disappointed (after death) to find that the long-lost estranged spouse is legally entitled to the account (and there's nothing that can be done about it).

Good Luck!

[david rigby]

Check to see if IRS Reg. 1.401(a)-20, Q&A27 applies to your situation.

[mbozek]

You need to see if the beneficiary desigantion is irrevocable under the plan and participant needs spousal consent to terminate the payouts under the plan and rollover to an IRA.

[Appleby]

If he lives in a community/marital property state, the IRA custodian may require spousal consent to name someone other than spouse as primary beneficiary, unless an exception applies- something else to think about.