Spousal consent to distributions

[Tom]

Assume there is a 401(k) that does not provide for QJSA/QPSA as the plan contains no contribution sources requiring such nor does the plan include the annuity options electively.

A 401(k) plan primary beneficiary must be the spouse unless the spouse consents to an alternative.  Assume the participant wishes to take in in-service distribution.  Do TPAs typically look up the beneficiary before approving a distribution to confirm the spouse is the primary beneficiary or that the spouse consented to an alternative? 

If a non-spouse was named without spousal consent, then that would be in invalid designation and the spouse would remain primary beneficiary.  So it would seem distributions can be approved without reviewing beneficiary designations?

 

[Bri]

Yes, if the spouse's consent was not given nor witnessed, then the spouse is still the legal beneficiary.  But that doesn't prevent the participant from taking funds from the plan.

If the spouse is NOT the beneficiary, it's because they allowed it by signing away their right to death benefits.  So too bad on them if the participant elects a withdrawal.

[fmsinc]

https://www.bloomberglaw.com/external/document/X34LHKL4000000/retirement-benefits-professional-perspective-spousal-consent-req

https://www.irs.gov/retirement-plans/plan-sponsor/fixing-common-plan-mistakes-failure-to-obtain-spousal-consent

https://smartasset.com/retirement/spouse-401k-withdrawal-proposal

[Tom]

I had actually l read that article the other day which prompted my question.  The last sentence of the paragraph below applies to the type of plans in the bolded paragraph heading,  not to all plans.  That's always been my understanding.  But when I read this, I misunderstood the contest of that sentence and made it too broad.

Thanks for the clarification. It just seems counterintuitive that a spouse must be the beneficiary (if not waived) but the participant can take distributions without spousal consent for plans without the QJSA/QPSA requirement.