Why Might a Provider Ask for My Spouse's Consent When Rolling Over Retirement Funds?

• ERISA Regulations: If your retirement plan, such as a 401 (k), is covered by the Employee Retirement Income Security Act (ERISA), federal law may require spousal consent before transferring or rolling over funds. This is especially true if the rollover changes how the funds are distributed, such as removing spousal survivor benefits.
• Joint Property States: In community property states, retirement funds earned during marriage are considered joint marital property. Consent ensures both spouses agree on significant financial decisions involving shared assets.
• Beneficiary Protections: Spousal consent protects the spouse's right to remain the primary beneficiary unless they explicitly agree to waive that right.