Site News and Information => Community alerts => Topic started by: Leigh on August 17, 2006, 10:10:42 PM Return to Full Version
Title: pension funds
Post by: Leigh on August 17, 2006, 10:10:42 PM
Post by: Leigh on August 17, 2006, 10:10:42 PM
It is a great and historic day for our community. Today, federal legislation called the Pension Protection Act was signed into law and it includes two provisions that extend important financial protections to more Americans - including same-sex couples. This is an incredibly exciting victory that will be helpful to millions of gay, lesbian, bisexual and transgender families.
This Act is important because it has two hard-fought HRC-backed provisions that we lobbied for intensely and secured its inclusion. These provisions will help same-sex couples nationwide. Basically what this means is that these two provisions ensure that the U.S. tax code, in times of emergencies, is fairer to more Americans, including our community, and puts us on a more equal footing with other couples. Here's how these provisions can impact the lives of GLBT Americans:
The first provision, called "Non-Spousal Rollover"
* Allows the transfer of an individual's retirement plan benefits, like a 401(k), to an Individual Retirement Account (IRA) for a non-spouse beneficiary like a domestic partner, sibling, parent, cousin or anyone else when the individual dies.
* In the past, unless you were the legally recognized spouse of the deceased, you were forced to withdraw the amount as a lump sum and you faced immediate tax penalties which would eat away at the savings amount intended for retirement.
The second provision, known as "Hardship Distribution":
* Allows individuals who list their same-sex partner or other non-spouse beneficiary under a 401(k) plan the ability to tap into their retirement funds in the case of certain medical or financial emergencies of the beneficiary.
* In the past, the federal law only permitted such withdrawals for employees' legally recognized spouses or dependents.
For more details on how the two provisions can help you and your family, please visit our website at: www.hrc.org/estateplanning.
No matter what happens if your wife or partner is signed on you have covered your bases.
This Act is important because it has two hard-fought HRC-backed provisions that we lobbied for intensely and secured its inclusion. These provisions will help same-sex couples nationwide. Basically what this means is that these two provisions ensure that the U.S. tax code, in times of emergencies, is fairer to more Americans, including our community, and puts us on a more equal footing with other couples. Here's how these provisions can impact the lives of GLBT Americans:
The first provision, called "Non-Spousal Rollover"
* Allows the transfer of an individual's retirement plan benefits, like a 401(k), to an Individual Retirement Account (IRA) for a non-spouse beneficiary like a domestic partner, sibling, parent, cousin or anyone else when the individual dies.
* In the past, unless you were the legally recognized spouse of the deceased, you were forced to withdraw the amount as a lump sum and you faced immediate tax penalties which would eat away at the savings amount intended for retirement.
The second provision, known as "Hardship Distribution":
* Allows individuals who list their same-sex partner or other non-spouse beneficiary under a 401(k) plan the ability to tap into their retirement funds in the case of certain medical or financial emergencies of the beneficiary.
* In the past, the federal law only permitted such withdrawals for employees' legally recognized spouses or dependents.
For more details on how the two provisions can help you and your family, please visit our website at: www.hrc.org/estateplanning.
No matter what happens if your wife or partner is signed on you have covered your bases.
Title: Re: pension funds
Post by: tinkerbell on August 17, 2006, 10:24:04 PM
Post by: tinkerbell on August 17, 2006, 10:24:04 PM
Quote from: Leigh on August 17, 2006, 10:10:42 PM
It is a great and historic day for our community. Today, federal legislation called the Pension Protection Act was signed into law and it includes two provisions that extend important financial protections to more Americans - including same-sex couples. This is an incredibly exciting victory that will be helpful to millions of gay, lesbian, bisexual and transgender families.
This Act is important because it has two hard-fought HRC-backed provisions that we lobbied for intensely and secured its inclusion. These provisions will help same-sex couples nationwide. Basically what this means is that these two provisions ensure that the U.S. tax code, in times of emergencies, is fairer to more Americans, including our community, and puts us on a more equal footing with other couples. Here's how these provisions can impact the lives of GLBT Americans:
The first provision, called "Non-Spousal Rollover"
* Allows the transfer of an individual's retirement plan benefits, like a 401(k), to an Individual Retirement Account (IRA) for a non-spouse beneficiary like a domestic partner, sibling, parent, cousin or anyone else when the individual dies.
* In the past, unless you were the legally recognized spouse of the deceased, you were forced to withdraw the amount as a lump sum and you faced immediate tax penalties which would eat away at the savings amount intended for retirement.
The second provision, known as "Hardship Distribution":
* Allows individuals who list their same-sex partner or other non-spouse beneficiary under a 401(k) plan the ability to tap into their retirement funds in the case of certain medical or financial emergencies of the beneficiary.
* In the past, the federal law only permitted such withdrawals for employees' legally recognized spouses or dependents.
For more details on how the two provisions can help you and your family, please visit our website at: www.hrc.org/estateplanning.
No matter what happens if your wife or partner is signed on you have covered your bases.
Wow..this is indeed great news! I know that California has had a similar law for a few years now, for my boyfriend and I were able to make some major changes in our 401K plans, but the fact that this is now a federal law will definetely allow many Americans to do what they please with their retirement money without having to worry about RED TAPE. ;)
tinkerbell :icon_chick: