09-04-2003, 08:54 AM
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 Re: 403b Ownership Question Gene E. Utterback, EA wrote: - quote - > "Joe & Judy Scardino" <scardino[at]pacbell.net> wrote: > > Situation: One spouse has a 403b account with his employer. > > Once retired and past age 70 1/2, he changes the beneficiary > > to his children, equally, in order to minimize distributions > > and taxes. Two years later he dies. .... - quote - > First, I'm not sure how he changed the beneficiary
I missed that. The spouse's signature is required for the> designation without the spouse's consent. The change may > not have been valid. beneficiary of a qualified retirement plan to be anyone BUT the spouse. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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09-03-2003, 07:01 AM
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| Re: 403b Ownership Question "Joe & Judy Scardino" <scardino[at]pacbell.net> wrote: - quote - > Situation: One spouse has a 403b account with his employer.
First, I'm not sure how he changed the beneficiary> Once retired and past age 70 1/2, he changes the beneficiary > to his children, equally, in order to minimize distributions > and taxes. Two years later he dies. > His widow and children agree that their deceased > father/husband would not have wanted the 403b assets > transferred to the children, since the wife would need them. > The 403b trustee will, of course, only transfer the 403b to > the children. > The widow and children want to know if there is a way to > transfer the account to the widow/mother, so she owns it and > can use the assets for her expenses (with the children shown > as beneficiaries). If so, how is this done? designation without the spouse's consent. The change may not have been valid. Second, and you will need to check with a local estate attorney about this -the children may be able to refuse the inheritance. In this case, it would go to the next of kin, which may be the widow. Third, the children can always pay the taxes on the money and then trasnfer the remaining dollars to their mother or pay for her expenses. There may or may not be gift tax issues with this, you didn't post enough details for us to know for sure. Good luck, Gene E. Utterback, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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