QJSA Requirements (Posted June 8, 2002) Technical Tip 74: The following question and answer were from the IRS Q&A Session at the 2000 ASPPA Annual Conference: The last sentence of Reg. Sec. 1.417(e)-3(b)(1) appears to require that the QJSA be immediately available. Is this correct? If so, is there any de minimis exception? It’s not inconceivable that the annuity might be less than any annuity provider’s minimum requirements. Response: Yes. It is correct. There is no de minimis exception. You may need to self-insure. Comment by the RLR&C ERISA Attorneys: A defined benefit plan that must offer the participant a Qualified Joint and Survivor Annuity (QJSA) with payments commencing immediately, even if the plan also offers a lump sum as an optional form of distribution . For young participants, the QJSA , which is the actuarial equivalent of the benefit payable at normal retirement age, will be small, sometimes less than the minimum annuity that an insurance company will issue. The IRS takes the position that if a participant elects to receive a QJSA which is less than the minimum that an insurance company will provide, annuity payments to the participant must be made directly from the plan. Of course, if the lump sum does not exceed $5,000, and the plan provides lump sum amounts of $5,000 or less can be immediately distributed, the QJSA would not be required. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.