Erisa Retirement Plan Who Can Be Beneficiary In Illinois
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In general, ERISA does not cover plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment or disability laws.
A person that is not an individual, such as the employee's estate, is not a designated beneficiary. If a person other than an individual is a beneficiary designated under the plan, the employee will be treated as having no designated beneficiary, even if individuals are also designated as beneficiaries.
Now that you know what ERISA covers, you'd like to know who can be a beneficiary on an ERISA plan. Generally, an ERISA plan participant can select just about anyone to be their beneficiary. Typically, a plan participant selects their spouse, children, or other family members.
A participant's beneficiary in a qualified retirement plan that is subject to the qualified joint and survivor annuity (QJSA) requirements under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (Code) is automatically his surviving spouse, unless the spouse has waived his rights ...
This survivor's benefit, called a qualified joint and survivor annuity (QJSA), will provide payments over your lifetime and your spouse's lifetime. The benefit payment that your surviving spouse receives must be at least half of the benefit payment you received during your joint lives.
If you are a resident of certain states, you may be required to list your spouse as your primary beneficiary and designate him or her to receive at least 50 percent of the benefit. In some states, you can name someone else with your spouse's written permission.
A qualified retirement plan refers to employer-sponsored retirement plans that satisfy requirements in the Internal Revenue Code for receiving tax-deferred treatment. Most retirement plans offered by employers qualify including defined contribution plans like 401k plans and defined benefit plans like pensions.
The Bottom Line Qualified retirement plans are employer-sponsored plans that meet the requirements of the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA) and are eligible for certain tax benefits, such as tax deductions for contributions and tax deferral of investment gains.
The statement that is correct regarding qualified retirement plans is that they are regulated by the IRS and the Department of Labor. These plans, like the 401(k)s and 403(b)s, are designed to provide tax-deferred retirement savings for employees.
Final answer: The statement that is true regarding retirement plans is that tax qualified plans allow the employer a tax deduction for contributions made on behalf of employees, whereas non qualified plans do not. Non-qualified plans can still exist without such tax benefits.
