justice denied
Team Owner
"All of my accounts have her as the beneficiary, and our will lists her to get everything we own if I should Die"
My wife and I had a great year this year. We intend to max out both of our 401(k)s and IRAs, and my solo 401(k) from my self-employed business to remain under an income limit for school choice. Previously, I have encouraged my wife to convert her 401(k) to a Roth 401(k) during low income years.She advised me that her 401(k) was from her post-college, pre-marriage years and she had an emotional attachment to it, and therefore did not want to touch it. As part of this new tax planning, I found out that the $100,000 in the old 401(k) is still in her maiden name, and her sister is her beneficiary.
I asked her to change the beneficiary to myself because if she dies, I will need that money to raise our four young kids. She says that her sister “will give me the money,” and asks, “You don’t think she will give you the money?” like it is some type of trust issue.
We are almost 40, and have $150,000 in Roth retirement funds and $600,000 in rental-property equity. All of my accounts have her as the beneficiary, and our will lists her to get everything we own if I should die. What should she do — and what action should I take?
Surprised Husband
My wife made her sister 401(k) beneficiary. I asked to be listed in case she dies first — she promised her sister would 'give me the money.' What should I do?
'All of my accounts have her as the beneficiary, and our will lists her to get everything we own if I should die.'
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