Change benefit election after started receiving benefits

Hi,

An owner only DB Plan (one participant the owner) elected a 100% Joint & Survivor (spouse) annuity and stared taking benefits (RMD). After 11 year of taking benefits, his spouse passed away. 1. He cannot change his election, even though his survivor passed away since he already started taking benefits. Correct?  2. The plan is very overfunded , what will happen in the event of the passing of the participant since he cannot change his election of the survivor? Will the assets revert to the estate and the estate will owe the excise tax for the overfunding reversion. 3. Can the estate sell the overfunded plan to an underfunded plan to avoid the excise tax? Thank you very much for any insights on this.

Some plans allow changes to the extent permitted by the regs - I believe there are some exceptions in the 401(a)(9) rules. If the owner is still "working" then upon actual retirement he may be able to make a new election. 

Another possibility, purchase an annuity contract for the benefit, will cost more than remaining PVAB but will provide longevity protection for the recipient. And/or, if not at the 415 maximum benefit, amend to increase the benefit.

Agree - check the document - but also remember that the current pvab is based on the current survivor benefit, not the original j&100.