Distribution of my retirement account

shortmort37 · Nov 28, 2022

My wife and I currently have children from previous marriages; in my 403(b) retirement account, she along with my two children are named as beneficiaries upon my death - her at 50%, each of my two children at 25%.

She does not have her own retirement account. She would have the remaining asset she receives from me distributed among her three children upon her own death.

In the event she were to die before me, I would like to distribute 50% of the account upon her death to her three children as her gift to them. Yes, I understand there would be a significant tax penalty, and this would come out of the asset. But is there a way to document my intentions legally, and make them binding? This would give my wife comfort of mind.

Zigner · Nov 28, 2022

You would be wise to seek the advice of an estate planning professional.

zddoodah · Nov 28, 2022

shortmort37 said: ↑

is there a way to document my intentions legally, and make them binding?
Click to expand...

Yes. Consult with an estate planning attorney.

hrforme · Nov 28, 2022

you also need to check on the beneficiaries of your 403(B) because she would need to notarize that she is okay with only receiving 50% (she's entitled to 100%) and assigning the rest to others.

Also you need to check on the distributable events that allow for ANY payout of the 403(b).Because her death isn't going to be a qualifying event to take $s out so you will need another reason to do so.

I agree that talking with a professional AND getting a copy of the 403(b) Summary Plan Description (SPD) is the best idea because there are limitations.

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Distribution of my retirement account

shortmort37 Law Topic Starter New Member

Zigner Well-Known Member

zddoodah Well-Known Member

hrforme Active Member

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