Spousal Consent Requirements in Retirement Plans
Summary
The GAO issued a report finding that most defined contribution retirement plans, such as 401(k)s, do not require spousal consent for participants to remove funds through loans, withdrawals, or distributions. Approximately one in ten married households with retirement accounts removed funds in 2021, typically less than 10% of their total balance. The report notes that women may be particularly vulnerable due to lower rates of individual retirement account ownership.
What changed
The GAO examined spousal consent protections in private sector defined contribution plans and found that while most plans require spousal consent for beneficiary changes, fewer than one percent require consent to actively remove funds. Money purchase and target benefit plans, which mandate spousal consent for fund removal and provide survivor annuity protections, represent less than one percent of all private sector plans. The Thrift Savings Plan for federal workers requires spousal consent to remove funds but not for beneficiary changes. Stakeholders reported that unilateral fund removal without spousal knowledge can cause severe financial harm, including losses of hundreds of thousands of dollars, with women disproportionately affected due to lower rates of personal retirement account ownership.\n\nThe GAO did not recommend mandatory spousal consent requirements for all plans but suggested the Department of Labor could enhance education on existing protections. Stakeholders noted that extending consent requirements could delay processing, increase administrative costs that may be passed to participants, and complicate divorce-related transactions. Regulated entities should review current spousal consent practices, consider enhanced participant communications regarding spouse notification options, and monitor any future DOL guidance on retirement plan spousal protections.
Source document (simplified)
GAO-26-107536 Published: Mar 05, 2026. Publicly Released: Apr 06, 2026.
Fast Facts
Many married couples use defined contribution plans, such as 401(k)s, to save for retirement. But most of these plans aren't required to offer protections that would prohibit an individual from removing funds without their spouse's consent or knowledge. Removing such funds can significantly reduce future retirement income for both.
Additionally, fewer women have their own retirement accounts—which could make them particularly vulnerable. However, there are trade-offs to extending protections. For example, implementing consent requirements or spousal notification can result in processing delays and administrative costs for plan participants.
Magnifying glass focused on the words 401(k) Plan. Desktop items, including a calculator, pens, and paper.
Highlights
What GAO Found
Millions of married Americans save for retirement by participating in a defined contribution plan, such as a 401(k). While most plans require spousal consent for beneficiary changes, few require it to remove funds (e.g., take a loan, withdrawal, or distribution). For example, money purchase and target benefit plans, which require spousal consent to actively remove funds (e.g., not use the plan’s default distribution option), account for less than one percent of all private sector defined contribution plans. These plans require a survivor annuity upon the participant’s death, ensuring the spouse receives regular plan payments unless the spouse previously consented to the designation of another beneficiary. The Thrift Savings Plan for federal workers generally requires spousal consent to remove funds but not for beneficiary changes. Among the married households where at least one spouse had a 401(k) or similar account, about one in 10 removed funds in 2021, according to national survey data. Those that removed funds typically took less than 10 percent of the total household retirement balance.
When a defined contribution plan participant removes funds without their spouse’s consent, their spouse may experience financial and personal hardship, according to most stakeholders GAO interviewed. For example, the funds may be irreversibly gone, or it may create marital conflict. Stakeholders said that women are more likely than men to be negatively affected, in part because fewer women have their own retirement accounts. While there are no data on how often participants remove funds without their spouses’ knowledge, stakeholders said they think it is likely not common. Of the incidences stakeholders described to GAO, however, some cases reportedly involved severe consequences for the spouse, including losses of hundreds of thousands of dollars. The severity of the economic impact on the spouse depends on the total amount of funds taken and what proportion they represented of the retirement savings. Other factors impacting severity include personal circumstances such as the spouse’s income and how much time they have to make up lost savings before retirement.
401(k)-type Account Ownership in Married Couples
Adding spousal consent requirements to all defined contribution plans could increase financial safeguards for some spouses but may delay processing or increase costs for plans and participants, according to most stakeholders. For example, spousal consent requirements could prevent participants from removing funds during a divorce without the knowledge of the spouse. Additional requirements could increase operating costs, which plans may pass on to participants. Stakeholders identified alternatives and modifications to spousal consent requirements that may reduce administrative burdens, including notifying spouses when a participant removes funds, or only requiring consent to remove funds above a certain threshold. They also said that some exceptions to spousal consent requirements may be warranted, such as in cases of domestic violence.
Why GAO Did This Study
Married individuals can spend a lifetime saving for retirement through defined contribution plans, and the federal government offers incentives to contribute to them. If a plan participant removes retirement funds from their account without their spouse’s knowledge, it can significantly reduce the future retirement income for both of them. Federal law provides protections in some retirement plans by requiring spousal consent to remove funds, but protections differ among plan types.
GAO was asked to examine these issues. This report examines (1) when married participants are required to obtain spousal consent to remove funds from or designate a beneficiary in defined contribution plans, and how often fund removal occurs; (2) what stakeholders said about the potential effects on spouses when married participants take out funds without their spouse’s consent; and (3) what stakeholders cite as the trade-offs of increasing spousal protections and potential alternatives.
GAO reviewed relevant federal laws and regulations. GAO also analyzed nationally representative survey data from the 2022 Survey of Consumer Finances, the most recent available. GAO interviewed federal government officials and stakeholders from eight national organizations. These organizations represented retirees or the retirement industry. GAO also interviewed representatives from four family or retirement law firms and five firms that sponsor or manage retirement plans, and three spouses. GAO selected interviewees based on research or referral from other interviewees.
For more information, contact Tranchau (Kris) T. Nguyen at nguyentt@gao.gov.
Full Report
GAO Contacts
Tranchau (Kris) T. Nguyen Director Education, Workforce, and Income Security nguyentt@gao.gov
Media Inquiries
Sarah Kaczmarek Managing Director Office of Public Affairs media@gao.gov
Public Inquiries
Topics
Retirement Security Defined contribution plans Domestic violence Federal law Individual retirement accounts Private sector Retirement plans Thrift savings plan Accounts 401(k) plans Beneficiaries
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