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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10103
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My spouse is getting ready to withdraw benefits from a Tiaa

Customer Question

My spouse is getting ready to withdraw benefits from a Tiaa Cref retirement account from a former employer because he is 701/2. The employer was a private university. He insists that I must sign a spousal waiver for him to get his benefits. He has another Tiaa Cref retirement account with his current employer and doesn't want to retire. My question:
If I sign a spousal waiver on the former employer's Tiaa Cref retirement account will I give up rights to any benefits...even after his death? Also, will I be revoking my rights to his other Tiaa Cref retirement account or his Voya retirement account?
Thank you.
Submitted: 4 months ago.
Category: Tax
Expert:  Mark Taylor replied 4 months ago.

Hi, my name is mark. I will be happy to help you with your questions.

Expert:  Mark Taylor replied 4 months ago.

Is this a 401K plan? Is it a 403b plan? Or another type of retirement plan?

Customer: replied 4 months ago.
Not sure. Does it make a difference
Expert:  Mark Taylor replied 4 months ago.

From your description it sounds like he is taking a required minimum distribution. This would be a 401K.

Customer: replied 4 months ago.
Will this cost me an additional fee, above the originally advertised fee?
Expert:  Mark Taylor replied 4 months ago.

Yes, there is a $52 fee.

Expert:  Mark Taylor replied 4 months ago.

I can handle your question via the chat messages. Can you cancel the call?

Expert:  Mark Taylor replied 4 months ago.

Required minimum distributions are required once an individual turns 70 1/2. These would come from a 401k plan.

Customer: replied 4 months ago.
Where is chat?
Expert:  Mark Taylor replied 4 months ago.

Just the messages that I am typing.

Customer: replied 4 months ago.
Not sure how to cancel phone call
Expert:  Mark Taylor replied 4 months ago.

Ok the call is not going to go through. By signing the form you are not giving up any future benefits. You are just acknowledging that a distribution will occur.

Expert:  Mark Taylor replied 4 months ago.

I am assuming that you are the beneficiary for the 401K plan account. The balance of the account would transfer to you upon death.

Expert:  Mark Taylor replied 4 months ago.

You would be eligible to roll the amount into an IRA of your own.

Expert:  Mark Taylor replied 4 months ago.

You would not be giving up any right to any other retirement accounts.

Expert:  Mark Taylor replied 4 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Expert:  Mark Taylor replied 4 months ago.

Please let me know if you have any additional questions or need clarification.

Customer: replied 4 months ago.
Sorry, but my credit company asked if I wanted to cancel either of the two charges or both. I responded with either. Am waiting on a call from them.My spouse was married to another person at the time he worked at the private university and it was before 1988
Expert:  Mark Taylor replied 4 months ago.

You would need to find out if you are the beneficiary on the account. By law you would automatically be entitled to 50%. If someone else is listed as the beneficiary they would be entitled to the other half.

Expert:  Mark Taylor replied 4 months ago.

The current spouse is automatically entitled to 50%.

Expert:  Lane replied 4 months ago.

Hi,

...

I have a different answer.

...

I am, along with holdoing a law degree, an MBA with Finance specialization and a BBA, a CFP and CRPS (Chartered Retirement Plans Specialist)

...

You husband is mistaken about your needing to sign for him to be able to access his funds.

...

There are two reasons (required under ERISA - Employees Retirement Income and Security Act - and more specifically, the Retirement Equity Act of 1984, administered by the dept of labor) that you would need to sign.

...

(1) He is CHANGING the beneficiary, OR (more likely)

(2) He is select a payment option that will not give the spouse at least half of those benefits for life if he dies first.

...

The spot for a spousal signature is, by law, on all retirement distributions where this is a possibility.

...

But there could be NUMBROUS ways of taking the benefits that do not require a signature in that section.

...

I manage over 10MM in pension assets and act as an ERISA 3(38) fiduciary for those plans. This is what I do every day.

...

That's all this is about ... may or may NOT need to get you to sign, again, depending on whether (1) he is CHAGING a beneficiary or (2) taking a pension option that precludes a survivor benefit for the spouse.

...

By the way, the pension option that DOES tek the survivor option off in the event of his death is ALWAYS a highr number (this is a simple actuarial calculation that assumes that if the pension lasts until you BOTH die, then montly amount needs to be lower)

...

MANY times having enough life insurance in place to take car of that piece and taking that higher amount (with no survivor benefit) make the most sense for BOTH individuals.

Expert:  Lane replied 4 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Expert:  Lane replied 4 months ago.

By the way, this IS a 403(b) plan based on your comment about his previous employment.