Alan Simpson

Assuming that the company you worked for has a retirement plan you may be able to obtain a hardship withdrawal or in-service distribution from the plan which will allow you to have money to live on. Another option is the possibility of a loan from the retirement plan. While the loan payments must be made, otherwise the loan will be a "deemed distribution" from the plan you may be able to borrow enought to live on and make the loan payments until you are able to return to work.

We are working towards having all plans with a minimum loan of $1,000 and no more than one loan outstanding at a time. It is also required that payments be made by payroll deduction. [This message has been edited by Alan Simpson (edited 09-22-98).]

Since the plan document is a prototype I would suggest you contact the entity that provided the document (UPI, McKay Hockman, PPD, Corbel, etc.). They should have a legal consulting department that should be able to answer the question as it relates to that specific plan document. If you are unable to go directly to the company that drafted the plan you should be able to go to the company which sponsored the plan document (TPA, CPA firms, broker, etc) and have them contact the appropriate entity.

If the participant does not wish the retirement plan balance to go to his new wife on his death he should complete a new beneficiary designation form, signed by the new wife naming who he wants as beneficiary of the account. I would ensure that this is done on a form acceptable to the plan administrator and/or plan trustee. If the new wife is not agreeable to naming someone other than her as the primary beneficiary perhaps the participant could set up a trust, with named beneficiaries, allowing the money to go into the trust to be used for her benefit while she is alive and distributed to his sons at her death and termination of the trust. Another option is to name multiple primary beneficiaries with the new wife signing the beneficiary form agreeing to the beneficiary election. (ie. 20% to wife, 80% to his sons).

Since both 401(k) and 403(B) plan call roll distributions into IRA's some people assume that they could use an IRA to accomplish a rollover between a 403(B) and 401(k) plan. This is NOT the case. Therefore beware of IRA rollovers.