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Qualified Joint And Survivor Annuity (QJSA)

Qualified Joint And Survivor Annuity (QJSA)

What is 'Qualified Joint And Survivor Annuity - QJSA'

An annuity payment from a qualified plan or 403(b) account that provides a life annuity to the participant and a survivor annuity for the spouse after the participant's death. QJSA rules apply to money-purchase pension plans, defined-benefit plans and target benefits. They can also apply to profit-sharing and 401(k) plans, but only if so elected under the plan.

Explaining 'Qualified Joint And Survivor Annuity - QJSA'

The plan document usually provides the annuity percentage, but the general requirement is that the survivor annuity must be 50-100% of the annuity paid to the participant. If the participant is unmarried, the annuity is over his or her life expectancy.


Qualified Joint And Survivor Annuity (qjsa) FAQ

What is qualified joint and survivor annuity?

A “qualified joint and survivor annuity” or “QJSA” payment form gives you a retirement payment periodically for the rest of your life. The benefit paid to your spouse after you die is often called a “survivor annuity” or a “survivor benefit,” and will be paid for the rest of your spouse's life.

What does 75 joint and survivor annuity mean?

You'll receive the same monthly pension as long as you're alive. If you die before your designated beneficiary, 75% of the monthly payments you received before dying will be paid to the beneficiary for the rest of his or her life.

What's the difference between a single life annuity and a joint and survivor annuity?

For a given pension, higher monthly payments are generated by a single life annuity than a joint and survivor annuity of equivalent value, because single life annuity provides payments for a shorter period. Joint and survivor annuities also reduce retirement income and consumption levels when both spouses are alive.

What is an annuity waiver?

Crisis waivers are annuity contract features allowing the annuity holder to withdraw money without triggering surrender charges. Some insurance companies classify waivers as riders, but the two aren't interchangeable.

How do I avoid paying taxes on an inherited annuity?

Lump sum: You can choose to receive the remaining money in an inherited annuity in one lump sum. You'd have to pay any taxes due on the benefits at the time of receival. Five-year rule: The five-year rule allows you to spread out payments from an inherited annuity over five years, paying taxes on distributions as you go.

Further Reading

Sizing Up the Pension PotSizing Up the Pension Pot
heinonline.org [PDF]
… If the participant dies after retiring, the benefit is called a qualified joint survivor annuity … are struc- tured like 401(k) plans; however, the 403(b) plans are not "qualified" under the tax … such as a Domestic Relations Order, is required to divide these benefits.To be eligible for benefits …

Death, Taxes, and Now Divorce: The Unavoidable Dyad Expanded to a Trilogy: ERISA's Social Policy Harms Women's RightsDeath, Taxes, and Now Divorce: The Unavoidable Dyad Expanded to a Trilogy: ERISA's Social Policy Harms Women's Rights
papers.ssrn.com [PDF]
… If the participant dies after retiring, the benefit is called a qualified joint survivor annuity … are struc- tured like 401(k) plans; however, the 403(b) plans are not "qualified" under the tax … such as a Domestic Relations Order, is required to divide these benefits.To be eligible for benefits …

The economic value of marriage for same-sex couplesThe economic value of marriage for same-sex couples
heinonline.org [PDF]
… If the participant dies after retiring, the benefit is called a qualified joint survivor annuity … are struc- tured like 401(k) plans; however, the 403(b) plans are not "qualified" under the tax … such as a Domestic Relations Order, is required to divide these benefits.To be eligible for benefits …

Aaron, Henty J., 194, 195 Accounting issues, 15-16, 17b, 18 ACLL See American Council of LifeAaron, Henty J., 194, 195 Accounting issues, 15-16, 17b, 18 ACLL See American Council of Life
books.google.com [PDF]
… If the participant dies after retiring, the benefit is called a qualified joint survivor annuity … are struc- tured like 401(k) plans; however, the 403(b) plans are not "qualified" under the tax … such as a Domestic Relations Order, is required to divide these benefits.To be eligible for benefits …

Longevity-insured retirement distributions from pension plans: Market and regulatory issuesLongevity-insured retirement distributions from pension plans: Market and regulatory issues
www.nber.org [PDF]
… If the participant dies after retiring, the benefit is called a qualified joint survivor annuity … are struc- tured like 401(k) plans; however, the 403(b) plans are not "qualified" under the tax … such as a Domestic Relations Order, is required to divide these benefits.To be eligible for benefits …

Phased retirement for defined benefit plan participantsPhased retirement for defined benefit plan participants
digitalcommons.unl.edu [PDF]
… If the participant dies after retiring, the benefit is called a qualified joint survivor annuity … are struc- tured like 401(k) plans; however, the 403(b) plans are not "qualified" under the tax … such as a Domestic Relations Order, is required to divide these benefits.To be eligible for benefits …


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