One-Participant 401K Beneficiary Designation
I am sure this has been asked before and I think I know the answer….but I want to make sure.
We know that a 401k plan participant must designate their spouse as their beneficiary unless the spouse notes in writing (and notarized) that they waive that right. However, every reference anywhere on Google refers to an ERISA plan. When the plan is a one participant plan and, therefore, does not fall under ERISA, do the same rules apply?
I would assume it does (keeping consistent with 401k plans generally), but any reference I see always states “under ERISA”.
Thanks in advance. Just want to make sure.
John
Permalink Submitted by Alan - IRA critic on Thu, 2015-10-08 18:27
Yes, the spousal beneficiary requirements apply to solo K plans even though they are not subject to ERISA because there are no non owner employees. There are other tax code requirements in Sec 401a for spousal beneficiaries unrelated to ERISA. ERISA originated the spousal protections which probably is the reason for the reference, but was then followed up with several tax code sections and other legislation which are intertwined to a large extent.
Permalink Submitted by john p on Fri, 2015-10-09 05:01
Thanks. I thought as much but just wanted to make sure. I certainly have always been under that understanding, but when I kept reading ERISA, ERISA, etc. I started thinking…..am I missing something? Thanks for the quick reply.