Retirement Forum

[ghillie]

I have a defined benefit plan through my government job. I earn 2% per year credit for each year worked. So after 25 years, my retirement would be 50% of my annual salary. This is based off a five year final average salary. So if my 5 year final average salary is 100,000.00 I would receive a retirement amount of 50,000.00

My plan also provides for "buying up" 5 years of service credits, so an additional 10% can be purchased.

My question is this.

1. My wife has a peculinary interest in my retirement. So in the event of a divorce, she may be awarded part of my retirement. Also at separation from employment and entry into retirment she has to agree to the selected amount of my retirement she would get in the event of my death. That comes in 0%, 50%, 66%, and 100%. My monthly retirment check is affected by the amount chosen. So she has legal interest and ownership in my retirement.

2. I will be retiring at 53, and my wife will be 52 when I retire. She plans to retire at 52 as well. We understand that she will need to rollover her 401K plan into another retirement plan to avoid penalties, i.e IRAs, or similar. She can also leave her 401k plan with her employer, but she doesn't want to do that.

3. So my question is this, when she rolls over her 401k at retirement can she rollover a portion into my retirement account to pay for the 5 year buy up?

[AnthonyK]

My guess is No. The best way to find out is to look through your plan documents or ask your retirement plan's administrator to see if that is allowed. Generally, commingling of retirement account funds between spouses is not allowed.