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Posted by DenverAnon on October 2, 2007, 12:10 pm
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> Harlan Lunsford wrote:
>> joetaxpayer wrote:
>>> DenverAnon wrote:
>>>> The cash assets total about $265K. The equity in the house
>>>> is another $40K.
>>>> Here are some questions from her:
>>>> a) Someone told her that if, god forbid, something were to
>>>> happen to her, the 401k money would go to the state because
>>>> her husband "did not designate anyone else" as the
>>>> beneficiary. Is this true? If it is true, is she better off
>>>> taking out the $28K, pay the penalties and face the tax
>>>> consequences?
>> Clarification: I just responded to the first responder and
>> not sure about the facts now. See quotes above; I took
>> that to mean anyone else other than himself. But maybe OP
>> meant anyone else other than his wife. You reckon?
> Yes, I see how you read it, but the "if something were to
> happen to her" implied she has access to the 401(k) money,
> but the concern was the lack of next beneficiary. I'm not
> 100% sure of this being clear to us either way. I know when
> I rolled my cash value pension to an IRA, I needed my wife's
> notarized signature, the Mrs has dibs on that and 401(k)
> money. Even my 401(k) loan years ago needed her signature.
> We'll see if OP clarifies.
Thanks to everyone for giving insightful answers.
Apologies for the confusion on her 401(k). Yes, she has
access to the 401(k) money, but the concern is the lack of
next beneficiary. What I gather from responses here is that
the next course of action for her is to roll that money
into an IRA.
RT
JOE
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