401(k) death benefit

[pmacduff]

I have a situation where the participant's beneficiary is his ex-spouse whom he still lived with at the time of death.

I would assume that she is treated as a non-spousal beneficiary for purposes of the distribution or rollover and required notifications?

Also if rollling over she must roll to a non-spousal IRA as opposed to being able to roll to her own IRA as she would if she was still spouse?

thanks in advance.

[Lou S.]

An ex-spouse is not a current spouse so you are correct.

[david rigby]

Check for QDRO?

[QDROphile]

What do you mean by "Check for QDRO?" As a naked proposition that is a very dangerous thing for a plan to consider. OK if you mean check to see if the plan has received a domestic relations order.

I suggest checking for plan terms that apply to circumstances of an unmarried participant's death. Some plans say that a former spouse (a beneficiary by default or designation) will not be the beneficiairy unless the designation is made after the divorce.

[david rigby]

What I mean is there is no mention of a QDRO. It's possible that the questioner assumed (but might not know for sure) that there is no QDRO, primarily because of the living arrangement. Don't look for trouble, but don't forget to check that which should be checked.

[pmacduff]

She is the listed beneficiary on the most current beneficiary form, nice and proper, way after the divorce. (They divorced quite some time ago but remained friends and continued living together up until his recent death.)

I'm not sure I understand the QDRO relate & would that really matter anyway at this point since she is getting 100% of the account? Or are you thinking he may have married someone else while living with his ex for all these years?

[david rigby]

Don't forget that a QDRO could have also included something awarded under the "child support" portion of 414(p). I'm not suggesting you look for trouble (or a subsequent spouse), but only reminding that any divorce opens the possibility of a QDRO.

[pmacduff]

The plan has no pending QDRO. The children are all grown. The plan balance is very small.

My main concern was that we offer the ex spouse, as beneficiary, the proper options for the distribution.

I think she thought she could roll to one of her own IRA accounts as opposed to a non-spousal IRA as required for a non-spouse beneficiary.

thanks for the input.