Do we need a written signature for a single participant, in a plan subject to QJSA requirements, for an annuity waiver, or can an electronic signature suffice? So, I guess the questions is, could you have a paperless distribution feature for single participants in a plan subject to QJSA requirements?

Thanks!

There is no difference in how the QJSA requirements are handled based on the size of the plan.

While my statement is true, upon re-reading the question, I now know it does not address the question as questioned below. The header threw me off.

single=sole

or

single=unmarried

?

Bingo. There is no question that a Plan can provide for electronic signatures. Those signatures are not limited to just the participant, so, in theory, a Plan could provide for completely paperless transactions involving both participant and spouse signatures. IRS Notice 99-1 has significant information in it. Have you reviewed it? It containes guidance with respect to, among other things, under Section 411 (the one that requires the signatures on distribution paperwork) the "Method of Providing Notice and Obtaining Consent", the "Timing of Notices" and examples. See the final regulations under Code Section 411(f), also, as they indicate how "consent" is allowed.

Single=Unmarried. It all seemed so logical when I first typed it, now that I reread it, not so clear.

I am sorry, but I am having trouble finding 411(f). I am searching Checkpoint but I am having no luck. Can anyone assist?

Treas Reg 1.417(e)-1(b)(2)(i) states : Written consent of the participant and, if the participant is married at the annuity starting date and the benefit is to be paid in a form other than a QJSA, the participant's spouse (or, if either the participant or the spouse has died, the survivor) is required before the commencement of the distribution of any part of an accrued benefit if the present value of the nonforfeitable benefit is greater than the cash-out limit in effect under §1.411(a)-11©(3)(ii).

I just wanted to verify that I am reading the above Treas. Reg. correctly. To me, it reads that a participant's waiver must be in writing; therefore, it could not be done electronically. What do you think?

My last statement/question is this...The distribution can not commence before the end of the 7-day period that begins the day after the explanation of the QJSA is provided to the participant. So, how would you do this if the unmarried participant can waive the annuity electronically? Am I making any sense at all?

In regard to election as to form of benefit (e.g., direct rollover), see IRS Notice 99-1 at http://www.unclefed.com/Tax-Bulls/1999/not99-01.pdf

In regard to special tax notice and participant's consent to distributions over $5,000, see 2000 Treasury Regulations Section on 402(f), 411(a), etc. at http://www.benefitslink.com/taxregs/electr...min_final.shtml (also see preamble of proposed regulations at http://www.benefitslink.com/taxregs/paperless.shtml)

I think that guidance leaves the issue of spousal consent unanswered at this time. (I don't think that they've resolved the issue of how to get PIN/password information to the spouse).

Sorry, not 411(f). Instead, try 1.411(a)-11(f).

I agree with Katherine. Nothing describes how the process is supposed to work with respect to secondary consent - that is, the consent of the spouse. Separate login and separate pin seems to be a minimum threshold (otherwise the participant could merely indicate consent when none existed).