Proposed MRD rules disclaimer.

[Guest]

Hi. The proposed MRD regs. provide that a designated beneficiary may disclaim their benefit. All the articles I have read discuss this from an IRA perspective. In light of the ERISA and IRC antiassignment and alientation laws, is a disclaimer allowed under a qualified pension plan? Under the antiassignment and alienation rules, the participant or beneficary may make a voluntary assignment of their benefit but it is taxable income to the participant or beneficairy, whereas a disclamer would be taxable income to the new person. The only reasoning I can think of why a disclaimer would be allowed under a qualified plan is that under the proposed rules the beneficairy must be recognized by the plan by 12/31 in the year after the participant's death. To the extent disclaimer rules generally require that it be made in 9 months and the plan has 12 months or more to recognize the designated beneficiary, the designated beneficiary would essentially be designating a new beneficiary for the participant via the disclaimer. If this is true then the plan sponsor must adopt the model amendment before accepting a disclaimer. Any insights you have will be most helpful. Thanks

[smm]

The IRS has issued several private letter rulings dealing with disclaimers and qualified plans. See for example GCM 39858. I know that many other PLRs on disclaimers have been issued. I don't have the cies availables. There is a discussion of disclaimers in Taxation of Distributions form Qualified Plans (Bennett) and Life and Death Planning for Retirement Benefits (Choate)>