Claims of spouse for qualified plan account for deceased par
When enrolling in employers profit sharing plan, unmarried participant named mother as beneficiary. Subsequently married and did not change beneficiary to spouse. Now deceased at age 49.In process of divorce but not finalized. What are the rights of the spouse in the deceaseds plan account?
Permalink Submitted by Alan Spross on Tue, 2011-06-28 18:00
Sec 401(a)(11) makes the current spouse the automatic plan beneficiary, regardless of who else is named as beneficiary when there is no spousal waiver signed.
However, a plan may provide for a 1 year waiting period before the automatic beneficiary provision takes affect, so the parties of interest will have to check the specific plan provisions if participant had been married less than 1 year at the time of death. See copy of 411D below:
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(D) Special rule where participant and spouse married less
than 1 year. – A plan shall not be treated as failing to meet
the requirements of subparagraphs (B)(iii) or (C) merely
because the plan provides that benefits will not be payable to
the surviving spouse of the participant unless the participant
and such spouse had been married throughout the 1-year period
ending on the earlier of the participant’s annuity starting
date or the date of the participant’s death.
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Note that a divorce would have to be final to have any affect on marital status.