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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 a qualified joint and survivor annuity?

In QJSA, retirement benefits are paid as a life annuity (a series of payments, usually monthly, for life) to the participant and a survivor annuity over the life of the participant's surviving spouse (or a former spouse, child or dependent who must be treated as a surviving spouse under a QDRO) after the death of the participant.

What is a 50 percent joint and survivor annuity?

A 50 percent joint and survivor annuity will pay the surviving annuitant half the payment amount that payees were receiving when both annuitants were alive. A 75 percent joint and survivor annuity will pay three-quarters of that amount to the surviving annuitant.

What does spousal waiver mean?

A Member's spouse uses the Spousal Waiver Form to waive his/her legal right to pension benefits after the Member's death. If the Member would like to select a form of pension that doesn't provide income to his spouse after the Member dies, then the form must be completed before the Member's retirement.

What does Qjsa mean?

It stands for Qualified Joint and Survivor Annuity.

How does a joint life annuity work?

A joint-life annuity provides you with an income for life, but then transfers to your spouse, partner or any other chosen beneficiary upon your death, paying them regularly for the rest of their lives. It could , for example, be 100%, two-thirds or half of your retirement income at the time of your death.

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

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

How is an annuity divided in a divorce?

Options when dividing an annuity: You can withdraw all or part of it; you can have it transferred into an IRA; you can withdraw from the original contract and have new contracts issued to you and your divorcing spouse.

Further Reading


Sizing 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 …



FAQ


What is a qualified joint and survivor annuity?

In QJSA, retirement benefits are paid as a life annuity (a series of payments, usually monthly, for life) to the participant and a survivor annuity over the life of the participant's surviving spouse (or a former spouse, child or dependent who must be treated as a surviving spouse under a QDRO) after the death of the participant.

What is a 50 percent joint and survivor annuity?

A 50 percent joint and survivor annuity will pay the surviving annuitant half the payment amount that payees were receiving when both annuitants were alive. A 75 percent joint and survivor annuity will pay three-quarters of that amount to the surviving annuitant.

What does spousal waiver mean?

A Member's spouse uses the Spousal Waiver Form to waive his/her legal right to pension benefits after the Member's death. If the Member would like to select a form of pension that doesn't provide income to his spouse after the Member dies, then the form must be completed before the Member's retirement.

What does Qjsa mean?

It stands for Qualified Joint and Survivor Annuity.

How does a joint life annuity work?

A joint-life annuity provides you with an income for life, but then transfers to your spouse, partner or any other chosen beneficiary upon your death, paying them regularly for the rest of their lives. It could , for example, be 100%, two-thirds or half of your retirement income at the time of your death.

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

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

How is an annuity divided in a divorce?

Options when dividing an annuity: You can withdraw all or part of it; you can have it transferred into an IRA; you can withdraw from the original contract and have new contracts issued to you and your divorcing spouse.

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