Since I am an ex-wife the plan sponsor informed me that I cant rollover the funds into my IRA or 401K but must take it as lump sum. Can anyone commment on this?
2006-11-04 11:23:18 · 5 answers · asked by TashaB 1 in Business & Finance ➔ Personal Finance
If he died in 2005 they are right. If he died in 2006 you don't have to do anything until 2007. The new pension bill says that if you are entitled to a distribution and you get it in 2007 you can have it rolled into an IRA and take distributions over the remainder of you life expectancy. A good CPA in your area should be able to help you get this done.
2006-11-04 11:27:25 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
The new law says you can roll it over in 2007 to your own 401k, however, you'll have to set up a separate IRA as an inherited IRA. No combining with a pre existing IRA. If you want to leave it where it's at, I would ask them to set you up a separate account, under your social and your name. Was he remarried? if so, it could be contested. But if not, it's your money so don't worry about losing it. Employer plans usually have the lowest fees so if you can keep it where it's at, and have good investment options, may be the best way.
2006-11-04 13:03:22 · answer #2 · answered by huffmak2 2 · 0⤊ 0⤋
I don't see what the problem is. Ask your husband to change the beneficiary to you. This is especially important if you decide to have children or anything. They need to be financially protected. As well, if something did happen (god forbid) to your husband, it's important you have some financial stability as it will be costly for the funeral and burial, you're going to be emotionally distraught and need to take some time off work, etc. If he has a problem with it, suggest ensuring that HE is the beneficiary on all your important documents. Tit for tat. But he shouldn't have a problem with it really. It's just comomn sense for your current spouse to be the beneficiary.
2016-05-21 23:54:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Grab it while you can. Don't wait. It's true it belongs to you if you are the beneficiary but the longer it lays there the bigger chance soem one may contess it.
It doesn't matter if you are the legal beneficiary if a lawyer smells a case he will tie it up and bleed you dry in court if it is much, They are the vultures of the human race.
Plus as he's dead there would be no taxes due on it.:).
2006-11-04 12:32:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Congratulations !!!!!
2006-11-04 11:45:50 · answer #5 · answered by Cammie 7 · 0⤊ 0⤋