Spousal Consent
I have a client that has a 401k plan and is currently single. She has her children listed as beneficiaries. However, she is getting married and would like her kids to remain beneficiaries. Does her spouse need to sign a spousal consent in this situation? She is retired. That said, is she required to notify the custodian of the marriage. If she does nothing, does her new spouse become beneficiary until if and when a consent is signed?
Permalink Submitted by Alan - IRA critic on Mon, 2023-12-11 15:42
The spouse is treated as the beneficiary for the 401k under ERISA, however a plan may include a 12 month waiting period after the marriage for a spouse not named as beneficiary to be treated as the beneficiary. Client may want to check this with the plan. This applies whether the plan has been notified of the marriage or not. To be safe and provide clarity, if the client does not want any of the 401k to be inherited by the spouse, they need to get a spousal waiver signed and submitted to the plan. Also, note that the division of the plan in the event of divorce will probably be different than if the plan is inherited.