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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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How to protect my 457K in a divorce? Can I put it in a Roth

Customer Question

How to protect my 457K in a divorce? Can I put it in a Roth IRA for my son?
Submitted: 11 months ago.
Category: Tax
Expert:  Lev replied 11 months ago.

Funds in 457K plan are considered community asset and is divided during divorce.
How to divide assets is a matter of agreement OR will be based on the divorce court ruling.
We may not protect assets by moving them one way or another - but must defend your position in the court.
You may elect to convert funds from 457 plan to Roth IRA. But should be aware - that is only possible after you've left the employer sponsoring the plan and only eligible distributions from 457b plan may be converted. If you have a 457f plan - those plans are not eligible for Roth IRA conversion.

Even you will convert funds into Roth IRA - that still will be considered community assets - and might be a subject to division during divorce. So - you will have the same issue.

Expert:  Lev replied 11 months ago.

If you elect to convert funds into Roth IRA account - that account still will be in your name.

You may not change the name on that account to your son.
But you may name your son a beneficiary of that account - so he will inherit your account after you pass away.

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