I've searched but have not found a conclusive cite. Plan is NON-QJSA, employer/plan is headquartered in common law state but has participants in community property state (CA). Does the sole fact that a participant lives in a community property state require spousal consent for a participant loan ?? Assume the loan is for 50% of vested balance (and greater than $5k). I assume ERISA preemption controls, but I've not found any concrete statement.
THANKS

We have taken the position (and have had IRS document reviewers buy it) that a PSP must require spousal consent for loans over $5,000, because the loan reduces the death benefit payable during the term of the loan. Since under a PSP (that has been designed to avoid teh main QJSA rules) 100% of the account must be paid as a death benefit to the spouse unless waived, the spouse has an interest in whether the loan should be granted.

Just for the record though, from the ERISA Outline Book:

Community property laws are preempted by ERISA.