Many government plans include death benefits that are payable to the participant's children until they attain age 18. Some plans we've seen also continue payments to the surviving spouse until his/her death or remarriage. Is this a violation of the 401(a)(9) five year payout rule? Since the plan dictates the spouse and/or children as the beneficiaries, it does not appear that they are treated as "designated beneficiaries".

A beneficiary mandated by the plan is a designated beneficiary