The purpose of Worksheet Number 3 (Form 5625)
and this explanation is to identify major problems that
come up over joint and survivor annuity requirements
under Internal Revenue Code sections 401(a)(11) and
417. However, there may be issues not mentioned in
the worksheet that could affect the plan’s qualification.
The joint and survivor annuity requirements of
sections 401(a)(11) and 417 apply to plans to which
section 411 applies, except those mentioned in
section 411(e) (such as governmental plans).
Generally, a “Yes” answer to a question on the
worksheet indicates a favorable conclusion while a
“No” answer signals a problem concerning the plan
qualification. This rule may be altered by specific
instructions for a given question. Please explain any
“No” answer in the space provided on the worksheet.
The sections cited at the end of each paragraph of
explanation are to the Internal Revenue Code and the
Income Tax Regulations.
The technical principles in this publication may be
changed by future regulations or guidelines.
Department of the Treasury
Internal Revenue Service
Document 6391 (Rev. 12-98) Cat. No. 45135A
The survivor annuity requirements of sections 401(a)(11)
and 417 apply to all defined benefit plans and all other plans
subject to the funding standards of section 412 (i.e., money
purchase pension plans, including target benefit plans).
There is a special exception, described below, for certain
money purchase plans that are part of ESOPs.
The requirements do not apply to defined contribution
plans (other than money purchase and target benefit plans)
that meet all of the following requirements:
the plan provides
nonforfeitable accrued benefit is payable in full, on the
participant’s death, to the surviving spouse (unless the
participant elects with spousal consent that the benefit
be paid instead to a designated beneficiary);
the participant does not elect t