IRA rollover and beneficiary question for State of PA – Creditor proof / non spouse beneficiary
Good morning forum –
I am a financial advisor working with a client who is married (bad marriage) and living in PA. Client has an older cash balance account (pension plan) from a former employer in NY state. Client is considering rolling that older pension plan (fully vested) form the former employer into a new IRA rollover here in the state of PA.
Client’s spouse has lots of legal and financial problems and client would like to name the couples adult children as beneficiaries.
Question 1 – If the client rolls a pension plan into a new IRA rollover does the client still have protection from creditors like ERISA sponsored qualified plans have? State of PA…This account is under $1,000,000.
Question 2 – Can the client name someone other than a spouse as beneficiary of an IRA in the state of PA (for example adult children) and does the account owner (IRA owner) need to get spousal consent to do so? I do know that this client WILL have to get spousal consent to roll their cash balance account out from the former employer’s plan in the state of NY.
Thank you in advance for your comments and help!!
DK
Permalink Submitted by Alan - IRA critic on Fri, 2022-07-15 16:28
Permalink Submitted by David Kay on Sat, 2022-07-16 15:14
Thank you Alan! Much appreciated !
Permalink Submitted by William Tuttle on Fri, 2022-07-15 16:51
Permalink Submitted by David Kay on Sat, 2022-07-16 15:15
Thank you!!