Non-alienation of Benefits Clause
(Qualified Retirement Plan)

Summary

Use this this non-alienation of benefits clause in a qualified retirement plan to prohibit participants and beneficiaries from assigning or alienating plan benefits, as prohibited under I.R.C. § 401(a)(13) except under limited circumstances. This template includes practical guidance, drafting notes, and optional clauses. Assignment and alienation includes any arrangement that involves giving a third party the right to receive payment of a benefit due to a participant or beneficiary. 26 C.F.R. § 1.401(a)-13(c). Certain exceptions are mandated under the Employee Retirement Income Security Act (ERISA), while others are permitted under the Internal Revenue Code . This provision reflects the mandatory requirements under ERISA and optional language for permissible exceptions under the I.R.C., along with important drafting notes. For more information, see Lexis Tax Advisor -- Federal Topical § 1C:9.09.