BG5150 Posted September 8, 2014 Posted September 8, 2014 I am adding a loan feature to a plan. Currently, the distribution rules call for spousal consent in lieu of a QJSA. I have seen plans that did not have consent for distributions have it in place for loans. Could we have the reverse situation wherein SC is required for distributions but not for loans? (The owner wants a loan and there is some marital strife, and it seems unlikely the wife will oblige with her Jane Hancock.) QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
QDROphile Posted September 8, 2014 Posted September 8, 2014 My recollection is that if the plan is subject to the QJSA requirements, then spouse consent is required for loans. It was many years ago that the specific question was examined.
ESOP Guy Posted September 8, 2014 Posted September 8, 2014 I am adding a loan feature to a plan. Currently, the distribution rules call for spousal consent in lieu of a QJSA. I have seen plans that did not have consent for distributions have it in place for loans. Could we have the reverse situation wherein SC is required for distributions but not for loans? (The owner wants a loan and there is some marital strife, and it seems unlikely the wife will oblige with her Jane Hancock.) My understanding was the same as QDROphile. The reason was what would stop the participant to take a loan with the intent to default. and thus deny benefits to the spouse?
BG5150 Posted September 8, 2014 Author Posted September 8, 2014 I agree. Also found the answer in the EOB. Thanks. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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