🧭 How Spousal Consent Works in Retirement Plans

You know, when it comes to marriage and money, There’s no such thing as “my” retirement account, it’s “ours.” The law sees it that way, too. That’s why some retirement plans require spousal consent before big moves like naming a different beneficiary or taking a lump-sum distribution. It’s designed to protect both partners, especially the one who may not be as directly involved in managing the finances.

I’ve seen smart, well-intentioned people get tripped up by this rule, not because they were trying to hide anything, but because they didn’t know it existed. Taking a few minutes to understand spousal consent rules can save you time, frustration, and potential conflict.

General Rule:

If you’re married, your spouse is Automatically the legal beneficiary of your plan, even if you name someone else on the form.

Spousal consent is required when you:

• Name someone other than your spouse as your beneficiary.

• Take a lump-sum distribution or rollover to another account (depending on plan terms).

• Waive a joint-and-survivor annuity, which guarantees income to your spouse if you pass away first.

  
  

Requirements:

• The spouse must sign a written consent form.

• The signature usually must be notarized or witnessed by a plan representative.

  
  

Example: If you’re married and want to leave your 401(k) to your children, your spouse must sign off on that choice — otherwise, the plan will default to paying them first.

Key Takeaway

Spousal consent isn’t a formality — it’s legal protection. It ensures both partners know and agree on where retirement money goes, especially when it’s a major part of the household’s future security.