401k vs IRA

[eleanorrunde]

What is the name of your state? New Jersey

my husband of 35 years moved his company6 401K into an IRA without telling me. He changed the beneficiary to 50 % my children and 50% me instead of the 100% me that the 401k was,

We are on brink of divorce - has this jeopardized my rights?

Was he allowed to move the 401K from a company plan without my permission?

[Ohiogal]

He should not have been able to do so.

[tranquility]

Why wouldn't a person be able to transfer a 401K to an IRA?

[las365]

He changed the beneficiary to 50 % my children and 50% me instead of the 100% me that the 401k was

Since he hasn't died, weren't the funds in the 401K community property belonging 1/2 to him and 1/2 to her? Aren't they still, regardless of what kind of account they are in?

I am seriously asking this question, not arguing a point.

[tranquility]

Their character did not change just because the beneficiary did.

[Ohiogal]

Originally Posted by tranquility

Why wouldn't a person be able to transfer a 401K to an IRA?

Moving a 401k requires the spouse's signature. As does getting a loan against a 401k.

[ShyCat]

Moving a 401k requires the spouse's signature.

When I rolled my Fidelity 401(k) over to a Fidelity IRA after a company-takeover, it was all done online and over the phone. My husband didn't sign anything. In fact, I just looked at the unused paper applications that were provided in the information kits and there's no place for a spousal signature there either.

[cbg]

As far as the law is concerned, a spouse's signature is not needed either to roll a 401k over, or to take a loan. A specific plan might have that specific requirement (it would be helpful with QDRO's, for example) but the law does not require it.

The law DOES require spousal signature for beneficiary changes; the beneficiary is automatically the spouse (if there is a spouse) unless the spouse provides written permission for it to be otherwise. But that's only for 401k's. He could roll it over into another qualified account such as an IRA without spousal signature, and split the IRA beneficiary between his wife and his children, without her permission, since an IRA does not have a mandatory spousal requirement.

This assumes that a qualifying event for moving the 401k has taken place. You can't just move a 401k any time you feel like it.