Hi All

We currently administer a small defined benefit plan with two participants (husband and wife). The plan has been in existence for 5 years and has a $10,000 annual minimum benefit.

My understanding is that any participant with the $10,000 minimum must receive the benefit in the form of an annuity.

What happens if the wife (who has the minimum benefit) dies? Is her primary beneficiary (the husband) prevented from electing to receive her benefit as a lump sum?

Thanks

Whether or not a lump sum is available depends entirely upon the terms of the plan which are specified in the plan document. The plan document may or may not permit lump sums in such circumstances.

Small plans such as these almost always do, but again it depends on what the document says.