[WSBAPT] 401K to IRA - CP Question

[Jacob Menashe]

This would mean, then, that if a 401K that had received only “community property” is rolled over to an IRA, that the IRA would be community property – i.e., the wife would have a claim on half of it at husband’s death? Anybody disagree?

Thanks,

Jacob Menashe

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Tom Stuen
Sent: Thursday, October 15, 2015 11:03 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] 401K to IRA - CP Question

Jacob:  The character of a 401(k) account depends upon whether the issue is a federal ERISA ownership issue or a Washington community property issue.  In a divorce, the 401(k) benefit earned during the marriage is considered community and frequently divided by QDRO.  ERISA considers the account owned only by the employee, and therefore prohibits division on the death of the non-employee.
Tom Stuen

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jacob Menashe
Sent: Thursday, October 15, 2015 9:49 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] 401K to IRA - CP Question

A community property question:  Assume Husband and Wife in a long-time marriage have always lived and worked in Washington. Husband rolls over his 401K, which would not be considered community property, into an IRA which, in some cases, can be. Do we have a CP IRA now? (I know they could make CP if they want, but I’m wondering what’s the answer if there’s just the rollover.) I apologize if I’m missing something here I should know.

Thank you,

Jacob

_______________________________
Jacob H. Menashe
Hickman Menashe, PS
4211 Alderwood Mall Blvd., Suite 202
Lynnwood, WA 98036
(425) 744-5658 phone
(425) 744-6078 fax
Satellite Office in Bellevue
www.hickmanmenashe.com




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