401k rollover to IRA: Must spouse sign rollover form?
Does a spouse have to sign off on their spouses rollover of a 401k?
From experience I know they always do when taking a lump sum on a pension, but I’ve done many rollovers of 401ks and providers don’t require spousal permission in many cases. Why the difference? Anyone familiar with the laws here? Is that left up to the plan? Is the spouse it up to the participant to keep the bene the spouse if the funds came from a qualified plan?
I ask because I have a deceased client who’s spouse wants to challenge the bene designation of his rollover IRA. The husband named a trust, and she wants it to be her. She is arguing that she didn’t sign off on the rollover so therefore she should be the bene.
Any feedback appreciated!
Dave
Permalink Submitted by Alan Spross on Tue, 2011-04-12 21:09
The spousal waiver requirements only apply to qualified plans, not to IRA accounts, although in community property states many custodians require a spousal waiver for a non spouse beneficiary of an IRA.
I doubt that this surviving spouse has any recourse if husband was in a common law state unless the funds were earned in a community property state. If husband was in a community property state at time of death or when the assets were earned, she should consult legal counsel to have her options clearly outlined.
Permalink Submitted by David Briegs on Tue, 2011-04-12 21:17
Understood. What about the initial rollover FROM the qualified plan? Does Federal Law require a spouse to sign-off on the rollover from the qualified plan before it rolls into the IRA?
Permalink Submitted by Alan Spross on Tue, 2011-04-12 21:52
No. See att’d:
http://business.cch.com/updates/pension/february2010.htm
Permalink Submitted by David Briegs on Wed, 2011-04-13 12:47
Thanks!