husband forged wife's signature on 401k
If you don't live in a community property state, you are free to name whomever you wish as your IRA beneficiary, even if you're married. However, you cant roll over money taken because of a hardship, a required distribution or an annuity payment. Where is my spouses 401(k)? That doesn't leave many non-fiduciary stalls back at the ranch. You cant name a different or additional beneficiary unless your spouse approves it in writing. That can be avoided, though possibly not by a sole proprietor. And, if a married couple gets a divorce, the 401(k) assets are generally split 50-50. Now he has plan to divorce me..my question is can I still file charges against him or report it to his employer that he forged my signature. Hey QDROphile, I wouldn't say the pre-Enron cases have been black or white either with respect to protecting Boards/plan sponsors from the application of ERISA's fiduciary standards on the theory they're pure 'settlors' and the only duty was to assure their fiduciary designation was reasonable. Senators Murray and Burr have written an open letter to the Government Accountability Office (GAO) requesting an investigation into the need for spousal protection in defined contribution plans. It does not matter that the plan could have been written without spouse consent to distributions. All investing involves risk, including loss of principal. Do Not Sell or Share My Personal Information. Under state law, she couldn't name a different beneficiary without the written consent of her spouse or a court order. A 401 (k) is an employer-qualified profit-sharing plan that offers you tax-deferred savings and investments. This is not an offer to buy or sell any security or interest. The first step is to call and ask them to send you any and all documentation that they have. WHY does a married person who has certain kinds of retirement accounts have to get his or her spouses permission to change the beneficiary of those accounts? 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Are annuities an option? Senators Patty Murray (D-WA) and Richard Burr (R-NC) have posed the question: retirement accounts are crucial to your future, so can your spouse really take the money without your knowledge? Under the law, a pension plan is allowed to specify that the spousal protection applies only after a year of marriage, but most do not do so, one pension specialist said. Your plan may also allow you to make after-tax contributions, which are not taxed when withdrawn. At my old job, I used to process a lot of QDROs, and quite a few death distributions. Notary is NOT required. There was no real evidence that his signature was forged. 3. Please explain. If the plan terms require consent and the fiduciary has reasonable suspicion that the consent of the spouse hase not been obtained, the fiduciary must take reasonable actions to assure compliance with plan terms. Average Retirement Savings: How Do You Compare? endobj Assuming that your marriage was somewhat long term (5+ years) you must definitely bring this up in the divorce -- you are entitled to 1/2 of his 401k deposited during the term of the marriage -- so an accountant will have to be hired to determine what the full amounts of the deposits were into the 401K -- because you want 1/2 of that money without any loan proceeds that you never signed for or . October 29, 2003 in 401(k) Plans. IRS: Retirement Plans FAQs Regarding Loans, FINRA: 401(k) Loans, Hardship Withdrawals and Other Important Considerations, IRS: 401(k) Resource Guide -- Plan Sponsors -- General Distribution Rules, Street Directory: 401k Better or Worse- You Need Your Spouses Consent. The Bank Fraud Statute in Title 18 of the U.S. Criminal Code, (18 U.S.C. Guest Kriso, How Do I Report This on My Tax Return? Sometimes, though, you may need to protect retirement assets from a spouse who has little financial knowledge. John Carl is Founder and President of the Retirement Learning Center, the nations preeminent thought leader on retirement issues. In these cases, she gets to decide how much money to contribute and which investments to select. And, as more wives save and invest in 401(k)s the power imbalance shifts from just getting the short stick on the side of a wife and now includes short-shrifting husbands, too. John also serves on the Government Affairs Committee for the National Association of Plan Advisors. The guidelines around spousal consent can vary by retirement account, so investors should be aware of the specific requirements for their account, said Thomas J. Hohl, vice president and associate general counsel of Fidelity Investments. Saving for retirement is one of the most pressing concerns for many Americans, and how to safeguard those funds is an equally important consideration. Do it even if you think your divorce settlement agreement makes it clear that your ex is no longer entitled to anything or that under state law, divorce voids your old beneficiary designation. He abandoned me and my children. How much money do we have for retirement? If her husband did it, she might want to take further action to protect herself and her assets. The short answer to both questions is, because the law says so. In English, the court held that the effect of the above clause was that the offer was made to both husband and wife and was capable of acceptance only by both the husband and wife.Given Ms English's signature on the loan agreement and mortgage had been forged, the clause stating that the offer was capable of acceptance only if all persons to whom the offer was made signed the acceptance was . At death, a participants vested benefit must be payable to the spouse unless the participant is not married or the spouse consents to another named beneficiary; The plan participant cannot elect payments in the form of an annuity; The plan administrator separately accounts for and continues to apply the REA rules to amounts transferred from other plans subject to the REA rules (e.g., money purchase pension plans or target benefit plans). SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. Husband gave no evidence - notwithstanding the "best foot forward" rule. Hardship withdrawals may require spousal consent as well. ), There have been even more cases about 401(k)s and similar plans, including severance plans and employee savings accounts, which are governed by the federal Employee Retirement Income Security Act (ERISA). If My Ex-wife Earns More Than Me, Does That Increase My Social Security Benefit? As a subscriber, you have 10 gift articles to give each month. The most concerning situation for wives arises during the rollover of 401(k) money to an IRA. It may be the future or just bad facts making for bad decisions, but the recent ENRON decison is out of line with the law and the DOL's position is out of line with the law and other positions that the DOL has taken (although the DOL is prone to find everyone to be a fiduciary). Each plan may contain different rules provided they adhere to existing legislation, and obtaining spousal consent for loans is an optional provision. Assets also can go to a spouse upon the death of the plan participant. Requiring an employee's spouse to sign a consent form before a loan is issued is one such provision. Over the last 40 years, the 401(k) has mostly replaced defined benefit (DB) plans. If the mortgage broker forged her signature, she should report the fraud. Wouldn't the QDRO policy for the plan require the participant's account, in a pending divorce situation to be "locked up" until it can be proven that the divorce decree doesn't award any of the participant's balance to the ex-spouse? BenefitsLink.com, Inc. As a result, Senators Murray and Burr have written an open letter for the GAO to investigate whether the government can easily extend existing spousal protection to such plans and help married couples safeguard their assets. Tax is due on money stemming from pretax contributions, employer contributions and earnings. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. I would take steps to make sure that the spousal signature was correct (if I was the trustee of the plan). Reg.). Another example Ms. Neuwirth gave was a couple who will not need the money from a specified pension in their lifetimes. But I'll agree with you, historically consistent conclusions in the ENRON litigation might be too much to expect. However, you will not file charges against your husband for his actions: The police and the local district or state's attorney will prosecute him. A state court can award all or part of a retirement fund to a spouse. That payout requirement doesnt come with the 401(k). And, ten times harder to fix. By Guest Kriso, October 29, 2003 in 401 (k) Plans. Aside from a primary residence, retirement accounts are often the largest asset for married couples, making them potential targets in cases of separation and divorce. Asking for permission in this day and age is nothing short of a throwback to 1840s colonial America. . 2007). Some 401(k) plans allow for hardship withdrawals, which could be a good alternative if you suspect you may have trouble paying back the loan. If I want to take money out of my spouses IRA, how do I do that? Some retirement plans, in fact, won't let you name someone else without this consent. The criteria to be a REA safe-harbor plan are found in Reg. h!,_*Vun'd. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any users account by an Adviser or provide advice regarding specific investments. For distributions made on or after October 17, 2000, a spouses consent is not required if the present value of the participants nonforfeitable accrued benefit, including both employer and employee contributions, on the date of the distribution is $5,000; If the plan administrator is satisfied there is no spouse or the spouse cannot be located; If the participant has a court order certifying his or her abandonment; or is legally separated; If the spouse is incompetent, the legal guardian can provide consent, even if the legal guardian is the participant; The plan must make required minimum distributions even though the employee, or spouse where applicable, fail to consent to the distribution (see Treas. But naming the employer as plan administrator or saying that the employer runs the plan wipes out most potential for effectively allocating risk and responsibility. stream He forged his wife's signature on a cheque that was payable jointly to her and to him, cashed it, and pocketed the proceeds. The short answer is, maybe. It depends on whether the 401(k) plan is subject to the annuity distribution requirements under the Retirement Equity Act of 1984 (REA) or is considered a REA safe-harbor plan. There are no my 401(k) accounts when youre married. If your spouse has reached retirement age, ask whether your signature is required for withdrawals? However, it turned out that the husband had forged his wife's signature. Most married workers, husbands or wives, with a 401(k) claim that account as mine. But it was never meant to be for just one of the spouses.
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