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. Unlike many annuity products people buy on the open market, QJSAs are built into the structure of the retirement plan itself rather than purchased separately.

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. This consent requirement is one reason QJSAs show up so often in guides about spousal beneficiary rules, since the spouse has a legal claim on the plan that the account holder cannot waive alone.

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.