Exempt Profit Sharing Plans. With respect to a profit sharing plan or 1165(e) Plan, the sole beneficiary of a married Participant in the event of his death before retirement benefits commence will be his spouse, unless the Participant’s spouse has agreed otherwise in a qualified consent (as defined in subsection (c) above). Such plans will be exempted from the qualified joint and survivor annuity requirement of subsection (a) above (herein referred to as an “Annuity Exempt Plan”). However, a profit sharing plan or 1165(e) Plan will not be an Annuity Exempt Plan if the Participant may elect an annuity form of payment under Section 11.1(b) to the extent that such form of payment is provided in the Adoption Agreement under Section 11.4(f), and in fact elects an annuity form of payment under Section 11.1(b). Furthermore, a profit sharing plan or 1165(e) Plan will not be exempted from the qualified joint and survivor annuity requirement with respect to any Participant for whom the Plan is a direct or indirect transferee of a defined benefit pension plan, a money purchase pension plan (including a target benefit plan) or a stock bonus or profit sharing plan which provides for a life annuity form of payment to the Participant; however, such Plan will not be treated as a transferee plan solely by reason of a rollover from any such other plan. Pursuant to Section 205(b) of ERISA, the Plan will be treated as a direct or indirect transferee only with respect to the transferred assets (and income therefrom) if the Plan separately accounts for such assets and any income therefrom. In addition, a profit sharing plan will not be considered an Annuity Exempt Plan unless the Participant’s spouse is the beneficiary of any insurance on the Participant’s life purchased by Employer Contributions of forfeitures allocated to the Participant’s account, unless his spouse agrees otherwise in a qualified consent.
Exempt Profit Sharing Plans. An exempt profit sharing plan is a plan which meets the Safe Harbor Rules under Section 10.6. In a profit sharing plan or 401(k) plan, the sole beneficiary of a married participant in the event of his death before retirement benefits commence is his spouse, unless his spouse has agreed otherwise in a qualified consent (as defined in subsection (c) above) (see Section 10.5(a)). Therefore, such a plan is exempt from the qualified joint and survivor annuity requirement of subsection (a) above. Under an exempt profit sharing or 401(k) plan, a participant will receive his retirement benefit in the form of a lump sum payment under Section 9.4(a) unless the participant elects otherwise. However, a profit sharing or 401(k) plan is not exempt from the qualified joint and survivor annuity requirement if the employer elects in the adoption agreement that an annuity is an optional form of distribution under the plan and the participant in fact elects an annuity form of payment under Section 9.4(c). Also a profit sharing or 401(k) plan is not exempt from such requirement with respect to any participant for whom the plan is a direct or indirect transferee of a defined benefit pension plan, a money purchase pension plan (including a target benefit plan) or a stock bonus or profit sharing plan which provides for a life annuity form of payment to the participant; however, this plan will not be treated as a transferee plan solely by reason of a rollover from any such other plan. In addition, a profit sharing plan will not be considered exempt unless the participant's spouse is the beneficiary of any insurance on the participant's life, unless his spouse agrees otherwise in a qualified consent.
