How will payment be made to the alternate payee?
If the plan allows for a lump sum distribution, the alternate payee can elect to receive his or her share in one single payment or rollover his/her share to an Individual Retirement Account (IRA) or other eligible plan. This is typical of 401(k) or profit sharing plans. Defined benefit plans, however, generally only pay benefits in monthly installments or “annuities.” If the plan will only pay benefits in the form of an “annuity” the alternate payee will typically receive monthly payments for life.
