Girls...need your advice. FH's company matches a higher percentage to his 401k than mine does. FH wants me to stop contributing to my 401k and instead he will take whatever I donate to my 401k and donate to his. I feel a little uncomfortable stopping my 401k...I just think it's a good idea to have it in my name, but FH thinks it makes much more sense to do it his way...we'll make more money this way.
If 'our' 401K is under his name solely, than do I have access to it if something happens to us?
What is the right move here????
Calimali
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Re: WR: 401ks..
Keep your own 401K!!!!!!
sr081906
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Re: WR: 401ks..
Don't keep all your eggs in the same basket.
Keep a 401K in your own name. What is your company match? Most company match 50% of your contribution up to 6% (that's 3% free given to you). So even if you contribute more than 6% on his... you won't get the 'free' match from his employer.
Stay on the safe side. Keep a little nest for you.
It also depends if you are getting married with a prenup, etc.
You might want to check with a financial adviser/lawyer.
In general, under common law marriage, what is in 401k prior to marriage is yours. Whatever is invested after marriage would be both yours.
So let's say you have 50K in it prior to marriage and you contribute 30K during marriage.
If you were to 'D' (god forbide!), you would calculate 50K plus or minus interest over the whole marriage (that's yours to keep), calculate also the 30K portion the same way (to be divided between both of you).
Blu-ize
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Re: WR: 401ks..
While it may seem prudent because his matches more, that is not your 401(k) and G*D forbid you are not together anymore-you may not be entitled to any of it.
Sorry to make it blunt like that. Retirement accounts like 401(k)s are individual accounts. You can be a beneficiary on his and vice versa, but it's not yours.
I do not recommend it at all.
EJSD2006
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Re: WR: 401ks..
keep your own!!! no matter how much I love my FH, i will always have backup money for myself just in case I need it.
jenheartsrob
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Re: WR: 401ks..
I'd keep that money for yourself
SomethingBlu
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Re: WR: 401ks..
Definitely keep your own account!! DH and I have separate retirement accounts because it makes more sense for us...you just never know.
ilovejohn
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Re: WR: 401ks..
If I were you I would keep your own account.
However, once your married, your husband cannot remove ANY money from his 401k (and vice versa) whether it be in the form of a loan, withdrawl or transfer... WITHOUT your notarized signature........
And, you are entitled to 50% of it in the event the marriage were to dissolve.
SomethingBlu
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Re: WR: 401ks..
Posted by ilovejohn
If I were you I would keep your own account.
However, once your married, your husband cannot remove ANY money from his 401k (and vice versa) whether it be in the form of a loan, withdrawl or transfer... WITHOUT your notarized signature........
And, you are entitled to 50% of it in the event the marriage were to dissolve.
This is not true. It totally depends on the plan. My work plan simply requests your spouse's signature for a withdrawal (I'm leaving my job and looked into this). Not necessary to notarize. FYI...
sr081906
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Re: WR: 401ks..
Posted by SomethingBlu
Posted by ilovejohn
If I were you I would keep your own account.
However, once your married, your husband cannot remove ANY money from his 401k (and vice versa) whether it be in the form of a loan, withdrawl or transfer... WITHOUT your notarized signature........
And, you are entitled to 50% of it in the event the marriage were to dissolve.
This is not true. It totally depends on the plan. My work plan simply requests your spouse's signature for a withdrawal (I'm leaving my job and looked into this). Not necessary to notarize. FYI...
What? I never heard of that.
Mdolph6
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Re: WR: 401ks..
I definitly think you should keep your 401k.
sarahthegreat
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Re: WR: 401ks..
i'm no accountant, but you need to keep your own money. especailly something as volatile as a 401k.
BlueTulip
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Re: WR: 401ks..
I agree-keep your own 401K. In fact, you should both up yours to at least the amount that the plans will match-this way you maximize your employer match.
stlmn2u
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Re: WR: 401ks..
Keep your OWN 401K!!!
aliwnec10
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Re: WR: 401ks..
Take it from someone who's parents had a horrible divorce and who's mother was left with nothing because it was all in my fathers name... KEEP YOUR OWN 401K!!!!!
