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DH investments in 401K - doubts

Discussion in 'Married Life' started by rosegirl, Jan 21, 2010.

  1. rosegirl

    rosegirl Bronze IL'ite

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    Hi,
    We are planning to leave US and go back to India for good in 1-2 years. DH wants to keep his 401K intact and not take it with us. I once saw his bank account and there is about 100K. I dont know anything about it and to whom it will go after his demise. He is very touchy when I talk about finance, especially the money I will get after his demise. I know we both have insurance with each others names as nominee. Other than that his dad used to purchase lands, house etc in his name with dh's money.

    Inlaws are very money minded and after dh, I want everything to come to my son. I can get the land and house according to Indian law (grandfather to grandson inheritance) but I have no idea about the 401K money. Since its a huge amount and if dh nominates his dad to receive it i can totally forget my son's future ..

    Is there a way to see who inherits it ?
    Can a wife/son get a share in it by default ?
    When can we get the 401k without penalty ?

    Note-there is no way I can ask DH to put my name as nominee in the 401K without triggering a nasty fight. I wouldnt mind it but it would work the wrong way and he might wantedly put his dad's name to spite me if I broach that subject.

    please help.
     
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  2. Ajith

    Ajith Silver IL'ite

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    I most cases (Savings, Investments, Insurance), the spouse is an automatic beneficiary unless another beneficiary is specified. In that case the spouse has to sign waiving his/her rights to the inheritance. Do you remember signing anything to that effect?

    Your husband must have assigned two types of beneficiaries. Primary beneficiary - which is you. Contingency beneficiary - in case you both die at the same time. Usually kids are the contingency beneficiaries, if there are no kids then parents are chosen as contingency beneficiaries. For a married person, the spouse is an automatic primary beneficiary unless the spouse waives it.

    If you have access to all his accounts, then it is easy to verify the beneficiaries. Otherwise you have to ask him. He has to verify the beneficiaries every year during open enrollment. Have you seen his 401k benefits statement or his yearly open enrollment form?
     
    Last edited: Jan 21, 2010
  3. rosegirl

    rosegirl Bronze IL'ite

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    Thanks so much Ajith. I dont remember signing any waiver. I have not seen any beneficiary form or enrollment form of any kind. I am pretty much in the dark.
     
  4. Priya16

    Priya16 IL Hall of Fame

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    RoseGirl,

    I don't know how long have you been married. I think in your circumstances, you can't do anything much. If you open up and talk that will spoil your relation.
    One thing good is you guys have insurances. I am pretty sure your husband would consider at least his sons future. So don't worry too much on details. If something comes up in general when he is in good mood check with him. Rest of the thing we need to leave god. Just hope for good. I am pretty sure your son will have good education and would able to survive for himself. Don’t worry much on it.


    Ajit,

    Nice to see your reply.
     
    Last edited: Jan 21, 2010
  5. Nandshyam

    Nandshyam IL Hall of Fame

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    By default, the marriage is more than an year old, spouse is the primary beneficiary. I guess it would be a smart move to not open this can of worms, before doing your investigation/homework.
     
  6. asuitablegirl

    asuitablegirl Gold IL'ite

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    Rosegirl,

    My hubby has a 401k (although unfortunately nowhere near 100k in it! :crazy) and I remember reading on the enrollment form that if nobody is elected, it automatically goes to me. And then it said, if somebody else OTHER than spouse is elected, the spouse needs to sign a release acknowleding that their husband/wife has elected somebody else. But since as it is now it automatically goes to you, I wouldn't say anything about it, especially if you think it will make your dh nominate his dad.

    Ajith gave the same advice I remember reading in the enrollment form. :thumbsup

    I'm really clueless though as to why your dh would ever even consider his dad instead of you or his own son. :bonk
     
  7. rosegirl

    rosegirl Bronze IL'ite

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    Thanks a lot guys .... I will keep my eyes open hereafter when I sign something.

    I got some really positive information and feel so much better now. thanks
     

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