401k plan

As a spouse has an interest in the accrued benefit of a participant, the plan does not satisfy the survivor annuity requirement unless the plan provides that, at the time the participant's accrued benefit is used as security for a loan, spousal consent to such use is obtained. Consent is required even if the accrued benefit is not the primary security for the loan.

No spousal consent is necessary if, at the time the loan is secured, no consent would be required for a distribution under $5,000. Spousal consent is not required if the total accrued benefit subject to the security is not in excess of the cash-out limit ($5,000) in effect under 1.411(a),11(c)(3)(ii).

A woman who claimed that a plan distribution form indicating her consent to her late husband’s distribution election was never properly notarized and therefore invalid has the agreement of a federal judge

The husband had elected a split distribution: one half in a lump sum and one half in an annuity without survivor benefits. The husband passed away after having received the lump sum distribution and two annuity payments. The wife then sued over the waiver's validity.

This would certainly seem to be the case based upon this excellent and disturbing post by Kathy Kristof-Senate Moves to Keep 401(k) Fees Hidden.

This issue needs be kept on the front burner. I fear that the Senate Finance Committee is hesitating to act on this issue out of fear that contributions from 401(k) providers will dry up. In my opinion this is the height of lawmakers putting interests of the public last.
 I encourage you to email the members of the Senate Finance Committee and ask them what they could possibly still need to "vet." Ask them to reconsider their decision and to pass a measure that mandates uniform, total, and full disclosure of ALL fees and expenses for all 401(k) plans.  No loopholes, no

Every company, whether a C Corporation may establish, S corporation, partnership, sole proprietorship, self-employed plan. The company sets the conditions within certain guidelines, which will be established at the time the plan. Employers, persons with less than 1 year service, union members, non-US citizens, part-timers to limit, etc., from being eligible for the plan. Contributions to plan can come from voluntary employee salary reduction, employer or both. Each employee can defer in 2010 up to $ 16,500 or 100% of compensation, less. Participants aged 50 years can make additional "catch-up" contributions of $ 5,500 in 2010. Employees are immediately vested 100% with their own salary reduction tax deferred