3772. What is a qualified optional survivor annuity and how can it be used to satisfy the QJSA requirements for qualified plans?polearyrcline202005-04-08T18:45:00Z2014-08-17T14:11:00Z2014-08-17T14:11:00Z1149853Hewlett-Packard Company711001142007-10-05T00:00:00ZTaxFactsDefaultArticleSite Map/Life Insurance/Income Taxation/Proceeds/Living/Disposition/Sale or Purchase of a Contract115140262-00-tf1.xml263.00;#2099;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1If the owner of a life insurance or endowment contract sells the contract, such as in a life settlement, what are the income tax consequences to the seller?74200.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T23:41:49Z3772. What is a qualified optional survivor annuity and how can it be used to satisfy the QJSA requirements for qualified plans?In plan years beginning after December 31, 2007, a plan will satisfy the QJSA requirements only if a participant who has waived the QJSA may elect a qualified optional survivor annuity.IRC Sec. 417(a)(1)(A). Spousal consent is not required to elect a qualified optional survivor annuity. The term qualified optional survivor annuity means an annuity for the life of the participant with a survivor annuity for the life of the spouse that is equal to an “applicable percentage” of the amount of the annuity that is payable during the joint lives of the participant and spouse. For this purpose, if the survivor annuity percentage is less than 75 percent, the qualified optional survivor annuity percentage must be at least 75 percent. If the survivor annuity percentage is equal to or greater than 75 percent, the qualified optional survivor annuity percentage must be at least 50 percent.See IRC Sec. 417(g).