401k Roll Over To Parents?

Time to learn about the Qualified Domestic Relations Order ? This is a modification to the Qualified Plan, the name that many 401K schemes are referred as. This QDRO happens when married couples divorce, and it will be different depending on whether the divorce happens in a community property state or not. Protecting Your 401(k) in a Divorce | The Motley Fool

Many employers will send out a large envelope every year to describe the SPD of the plan. We usually toss that in recycle. However, that document contains all manner of things. Even how to deal with divorce and death. The above Motley Fool link has this:

Before you can figure out how to fairly divide your marital assets, you need to know how much you have. You should both get summary plan descriptions (SPDs) of your 401(k)s and other retirement accounts. Then reach out to your 401(k) plan administrator to learn about any rules your plan has for dividing your assets. Share this information with both spouses' divorce lawyers. They'll need it to draft an agreement that the plan administrator will accept. If the administrator rejects your plan, you'll have to go back to the drawing board. ​

 

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This conclusion is reached by many unhappily married couples with complex financial lives. They also consider the total amount that will go to each of their lawyers, should they choose to split.
You can also imagine how much a "meeting of minds" has to happen in a divorce planning (when the children become legally major), whereas a marriage can happen so easily.