My wife retired from a bank 7 years ago with small pension and SSI payments. She had contributed to 401K during her employment. She will be 72 by the end of this year and is required to take her 1st RMD from her 401K. I am retired and have my own pension and 457 retirement account as well that need RMD as well.
The custodian of her 401K fund just sent her a notice and form to take her first RMD. It is difficult to understand the language when a sentence is long.
There is a QJSA Spousal Waiver that I need to sign which I don’t understand why because my 457 account didn’t require the same thing. The statement stated:
I am the participant’s spouse --------, I realized that the participant cannot waive this spousal benefit and receive annual required minimum distribution as described in the explanation unless I consent. I acknowledge that the annual RMD transection may reduce or eliminate any benefit otherwise payable to me. I voluntarily consent to the participant’s waiver and acknowledge that this will authorized the request for annual RMD payments including future RMDs.
Both of us have Joint 50% survival annuity in our pensions plan. As I understand 401K & 457 is not a pension plan but a supplementary to it.
What is “that the participant cannot waive this spousal benefit and receive annual required minimum distribution ----- ” Can someone explain what that mean please. And why my 457 did not ask her to sign my RMD.
