Unfiled beneficiary form for 401(k0
This is regarding a 401(k) that has an old beneficiary form on file. The old form lists the ex-wife as the beneficiary and the children as contingent. Plan documents state that the ex-wife is not an eligible beneficiary after divorce. The new wife has suddenly come up with a beneficiary form that was never filed with the plan administrator. Is there any case law or opinion stating that the form must be filed to be valid? There is nothing about the unfiled form in the plan documents.
I can find court opinions for FEGLI unfiled beneficiary forms but none for 401(k).
Can someone shed some light?
Thanks
Permalink Submitted by Kevin Brown on Thu, 2024-10-03 18:00
Short answer: This will be based on how the 401(k) plan administrator handles such matters.
Longer: My guess is they will most likely not accept a form unless it was provided to them by the owner (ie: before death). HOWEVER, given there is a new spouse I would assume that under Federal laws around 401(k) plans, the plan should require an updated form approved by the new spouse or the default is that the spouse receives the benefits. In the end, the only way to know is to contact the plan administrator for the rules they follow. They most likely will say the new spouse is legally the beneficiary unless a new form was filed with the new spouse signing a waiver.
I want to add that a “qualified” plan will be required by ERISA (Federal law) to have spousal consent. If the plan is one that is NOT qualified, the rules can vary a lot. So, the plan administrator is the one who can define the rules they follow.