Prob. You need to be a member in order to leave a comment. Original DB plans were required to make predictable income payments until the second spouse died. Ultimately, it is his obligation to meet required minimum distributions (RMD) starting at age 72. None. Do it even if you think your divorce settlement agreement makes it clear that your ex is no longer entitled to anything or that under state law, divorce voids your old beneficiary designation. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). Part of the loan application is a spousal waiver that must be signed and notarized before a loan request will be granted. Yes, but - In some cases the employer, not to mention small employer-owners who entitled themselves as plan administrators, will be deemed to be a plan fiduciary under the functional definition and as such will have the duty to monitor those fiduciaries delegated the day to day plan responsibilities. However, 401(k)s are fully intended to provide retirement income for both spouses. The second: for wives who also have 401(k)s they can recognize that they are in the drivers seat and make sure their husbands are well-informed. husband and wife appeared to have executed a conveyance of a house. If your spouse forged your signature, in all states that would be considered to be a combination of or at least one of the following types of crimes: identity theft, forgery, theft, conversion and the like. Even with trading authorization, her name cannot be on the IRA checkbook. You can accomplish this by granting your husband power of attorney, the right to commit you to legal contracts without your direct participation, Gup says. Many people come across such rules. 2007). However, you will not file charges against your husband for his actions: The police and the local district or state's attorney will prosecute him. She also took out over $16,000 in loans on her husband's 401k account without his consent, knowledge, or authorization. Copyright 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Emotional - I guess I am surprised and mad at the same time, that he has forged my signature, just to buy a new truck, and I have found out about it months later. The topic of spousal permission arises because of 401(k) beneficiary rules. It is the responsibility of the mortgage broker to get the approval of each person on the title to the house. <>>> 401(k) plans that are subject to the REA annuity mandates require plan administrators to obtain written spousal consent to distribute plan benefits in a form other than an annuity [Treasury Regulation (Treas. Failure to dismiss does not mean it won't work out right eventually. 1344) says that using any deceitful or fraudulent means to defraud a bank of any amount of funds is a felony. Under the Retirement Equity Act, the consenting spouse's signature on the required form has to be either notarized or witnessed by a plan representative. You cannot stop this prosecution even if you agree to participate in the loan after the act of forgery has occurred. Anyone can read what you share. Assets also can go to a spouse upon the death of the plan participant. Will a Roth Conversion Increase My Medicare Premium? To qualify for a hardship distribution, you must show an immediate and heavy financial need that you have to satisfy right away. And, worst of all, no way to access so much as a single dollar from this account. Your IP: There are no my 401(k) accounts when youre married. on Tue, 2011-04-12 17:09. You cant name a different or additional beneficiary unless your spouse approves it in writing. Talk to a Probate Attorney. And why does a married person who is about to start receiving a pension have to get spousal permission to select a payment option that will not give the spouse at least half of those benefits for life if the pensioner dies first? He is familiar with both types because Fidelity is the nations largest provider of retirement accounts for individuals but also oversees many corporate accounts. If you are concerned that your spouse may try to take a loan or withdraw funds from his/her 401K, you can contact the plan's sponsor and see if they will flag the account . Assuming that your marriage was somewhat long term (5+ years) you must definitely bring this up in the divorce -- you are entitled to 1/2 of his 401k deposited during the term of the marriage -- so an accountant will have to be hired to determine what the full amounts of the deposits were into the 401K -- because you want 1/2 of that money without any loan proceeds that you never signed for or . in finance from DePaul University. Similarly, your spouse can also get half of your 401(k) savings if you divorce. Requiring an employee's spouse to sign a consent form before a loan is issued is one such provision. endobj If the court convicts your husband of fraud, but you are not in any way charged or involved, your credit rating may not be affected. What responsibility do I have, as administrator, to the wife? His company knows he is married and can they be accountable for consenting to this change knowing it wasn't my signature? The designation of the fiduciary must be reasonable (it is not reasonable to designate ENRON scum to the post). I prefer not to surrender to chaos at the beginning of the process. This is not an offer to buy or sell any security or interest. If you can prove the forgery occurred, the court will not consider the debt a marital liability. Unlike traditional pension plans, private defined contribution plans like your 401(k) dont require spousal consent for early withdrawals. If your husband forges your signature on a loan document, you should call the police. In some states, the information on this website may be considered a lawyer referral service. WHY does a married person who has certain kinds of retirement accounts have to get his or her spouses permission to change the beneficiary of those accounts? 401k Fraud: Wife Steals Thousands from Husband's Account Penalty for a False Father Name on a Birth Certificate in Texas, Cornell University Law School: Titles 18--Crimes and criminal procedure, Fraud 101: Techniques and Strategies for Understanding Fraud; Stephen Pedneault; 2009, Bank Fraud: Exposing the Hidden Threat to Financial Institutions; Benton Gup; 1990. If you don't live in a community property state, you are free to name whomever you wish as your IRA beneficiary, even if you're married. The plan document will state whether it is a REA safe-harbor plan. The wife identified four of her signatures, but did not identify the others or those of her husband. Possible forged spouse signature - 401 (k) Plans - BenefitsLink Message Boards. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. ", In most cases, Pendeault says, when the bank learns an act of forgery has been committed, they will usually cooperate with the police and then swiftly act to protect their interests. Wouldn't the QDRO policy for the plan require the participant's account, in a pending divorce situation to be "locked up" until it can be proven that the divorce decree doesn't award any of the participant's balance to the ex-spouse? The other part of the investment . I forged my ex-wifes signature on a two party check issued to the both of us because she owed me money. A waiver of a spouses rights must make clear that it is irrevocable, court cases show. Gambone released his first book, "Financial Planning Basics," in 2007 and continues to work on his next industry publication. h!,_*Vun'd. John also serves on the Government Affairs Committee for the National Association of Plan Advisors. . Copyright 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Possible forged spouse signature - 401(k) Plans - BenefitsLink Message Am I the one and only primary beneficiary on every retirement account? endobj <> The very real, yet hidden danger is that the wife has just given up her claim to her retirement money. The Bank Fraud Statute in Title 18 of the U.S. Criminal Code, (18 U.S.C. Even if a wife has equal amounts saved in her own 401(k) and IRAs, there is a problem. Shame on them if they set themselves up to be fiduciaries under the functional definiton. %PDF-1.5 He has been writing since 1997. And, its not a malicious action on the husbands part. Permalink Submitted by alan-oniras@yah. Ha, shame or sham, take your pick - have your read some of the opinions from the bench in the Enron case? My husband forged my signature on a 401k designation. He is - Avvo Many, but not all, 401(k) plans are REA safe-harbor plans. By Guest Kriso, October 29, 2003 in 401 (k) Plans. 2 0 obj Other permitted reasons are financial hardship and a reservist being called to active duty. What I am saying is that thoughtful plan documents and appropriate discipline in observing formal arrangements can make a big difference in liability exposure in most cases. my ex husband forged my signature to secure a loan from 401k and i was not aware where he used the money..Up to this date the loan is already paid in full. The IRS states that a 401(k) plan may require an employees spouse to consent to a distribution, depending on the type of distribution and the plan specifics. As a result, when the woman died, her ex-husband was legally entitled to the annuity benefits. Not sure how to protect your retirement funds from unexpected situations? Myers is a self-taught computer expert and owned a computer sales and service company for five years. Finally, if an investigation discloses fraud, forgery, or other criminal acts, this could lead to an investigation. 401k rollover to IRA: Must spouse sign rollover form? Based in Greenville SC, Eric Bank has been writing business-related articles since 1985. In some special cases, with the help of a very good lawyer, and a very understanding loan officer, you might be able to refinance the loan on your own, without your husbands participationafter you have divorced him, Pendeault says. Re: 401k rollover to IRA: Must spouse sign rollover form?