Taking Over an IRA or 401K
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Taking Over an IRA or 401K
It's my understanding that my wife can assume control of my IRAs and 401K (actually my Thrift Savings Plan) upon my death. They don't have to be sold upon my death, and the proceeds issued to her. Would she still be able to assume control if she is listed as the sole primary beneficiary? I want to make sure she is able to assume control of them, and then sell when it suits her, probably gradually. In other word, I want to make sure that listing her as a primary beneficiary isn't going to somehow prevent this.
Re: Taking Over an IRA or 401K
If someone is listed as a specific beneficiary for an account the transfer of funds can be resolved quicker than if a person is eligible based on a category alone (such as surviving spouse). The beneficiary specification will be valid in all states.
From the perspective of the organization holding the account they can never be absolutely sure if the "surviving spouse" is really that. There is always a chance that there has been a divorce that they are not aware of and there is a possibility that a "newer" spouse will come forward.
From the perspective of the organization holding the account they can never be absolutely sure if the "surviving spouse" is really that. There is always a chance that there has been a divorce that they are not aware of and there is a possibility that a "newer" spouse will come forward.
Last edited by 123 on Thu Jun 17, 2021 8:57 pm, edited 1 time in total.
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- RickBoglehead
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Re: Taking Over an IRA or 401K
If your wife isn't listed as beneficiary, she can't do anything...
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Re: Taking Over an IRA or 401K
Thanks for the responses. I've been thinking a lot lately about what would happen if I predecease my wife, or if we both somehow pass away at the same time. The preparation is pretty much left up to me, and I'm trying to get everything in order without making any major mistakes.
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Re: Taking Over an IRA or 401K
Thanks for that. The way things stand she is listed as the primary beneficiary for all my accounts, and I'm the primary beneficiary for hers.RickBoglehead wrote: ↑Thu Jun 17, 2021 9:34 pm If your wife isn't listed as beneficiary, she can't do anything...
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Re: Taking Over an IRA or 401K
I wonder how many people list the name of a spouse when naming a primary beneficiary. Then get divorced and remarry, but forget to change the name to that of their new spouse.
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Re: Taking Over an IRA or 401K
Probably quite a few. That's why I'm a fan of consolidating down to one or two accounts. It's easier to check that the beneficiary designations are up-to-date if there are not too many of them.OpenMinded1 wrote: ↑Thu Jun 17, 2021 9:49 pm I wonder how many people list the name of a spouse when naming a primary beneficiary. Then get divorced and remarry, but forget to change the name to that of their new spouse.
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Re: Taking Over an IRA or 401K
Good point.backpacker61 wrote: ↑Thu Jun 17, 2021 10:03 pmProbably quite a few. That's why I'm a fan of consolidating down to one or two accounts. It's easier to check that the beneficiary designations are up-to-date if there are not too many of them.OpenMinded1 wrote: ↑Thu Jun 17, 2021 9:49 pm I wonder how many people list the name of a spouse when naming a primary beneficiary. Then get divorced and remarry, but forget to change the name to that of their new spouse.