Qualified Joint And Survivor Annuity
What Does Qualified Joint And Survivor Annuity Mean?
A qualified joint and survivor annuity (QJSA) is a component of a qualified retirement plan that provides regular income to the annuitant or the survivor of the deceased annuitant, often a spouse or child.
The survivor beneficiary typically receives only a portion of the annuity, which, in most jurisdictions, must equal at least half of the annuity’s monthly payments.
Insuranceopedia Explains Qualified Joint And Survivor Annuity
Qualified joint and survivor annuities (QJSAs) are included in most qualified plans, such as 401(k)s and profit-sharing plans.
If a plan includes a QJSA, the annuitant’s surviving beneficiary, often a spouse or child, will receive a portion of the annuity, typically at least 50%.
The plan owner may opt for a lump sum payment instead of regular income, but this option is only available if the beneficiary provides written consent.
The surviving beneficiary may also choose to waive their QJSA benefit, which they might do if they have access to another plan that provides post-retirement income.
