RSSAs 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).
Showing posts with label NAPFA401 k tricks. Show all posts
Showing posts with label NAPFA401 k tricks. Show all posts
Why Do I Need my Spouse's Consent for 401(k) Loan
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stock market drops
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On May 20, 2010 I was attending day 2 of the NAPFA National Conference and the Dow Jones Average dropped 376 points. On September 15, 2008 I was attending a TD Ameritrade Conference and the Dow dropped about 500 points (and Lehman Brothers declared bankruptcy).
I enjoy attending conferences (especially NAPFA conferences) because I have the opportunity to attend educational sessions on various financial topics and most importantly I have the opportunity to talk with and learn from my fellow financial advisors.
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