Transfer of IRA assets in a Community Property State -CA
In the state of California can a soon to be spouse be entitled to make claim to traditional IRA assets if the current beneficiaries listed are the IRA owners kids? Does the IRA owner need to obtain a spousal waiver after mirage to ensure his kids will be the sole beneficiaries of the trad ira assets?
Permalink Submitted by Alan - IRA critic on Fri, 2018-03-30 03:47
The kids can stay as beneficiary of the IRA owned before marriage. But no further contributions should be made to that IRA, and a copy of the last statement before marriage should be retained because earnings generated after marriage are community property. The spouse would have an interest that could be filled from other assets as negotiated in a settlement.
Permalink Submitted by John Cheung on Thu, 2018-04-12 17:36
would this hold true if i take funds from my 401(K) and rolled it to an traditional IRA, named the kids as the beneficiaries and then got married? sounds like if it did this then only earings from this Traditional IRA is what she could make claim to. Not the account balance amount prior to mirrage.
Permalink Submitted by John Cheung on Mon, 2018-04-16 21:48
would this hold true if i take funds from my 401(K) and rolled it to an traditional IRA, named the kids as the beneficiaries and then got married? sounds like if it did this then only earings from this Traditional IRA is what she could make claim to. Not the account balance amount prior to mirrage.
Permalink Submitted by John Cheung on Mon, 2018-04-16 21:49
would this hold true if i take funds from my 401(K) and rolled it to an traditional IRA, named the kids as the beneficiaries and then got married? sounds like if it did this then only earings from this Traditional IRA is what she could make claim to. Not the account balance amount prior to mirrage.
Permalink Submitted by Alan - IRA critic on Mon, 2018-04-16 23:07
Yes, that should work as well.