Can an SEC licensed broker-dealer transfer your 401k account into an IRA without your permission?

Can the broker-dealer also allow your husband to withdraw funds from your 401k-changed-to-IRA account without your permission? Is this a violation of fiduciary duty? Should I consult a lawyer?

401(k), Choosing an Advisor, IRAs
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June 2016

Typically no, however, some 401k plans may permit the 401k custodian to rollover a 401k account to an IRA if you're no longer employed and the account value is under a certain amount. For example, if XYZ company handles your 401k plan then the governing plan document for your company's plan may allow XYZ to move the 401k account into an XYZ IRA.  This is sometimes allowed so that the custodian can clear smaller 401k accounts out of the plan. But I don't think it would ever allow for your 401k at XYZ to be rolled over into another broker dealer's IRA.  If this rollover was permitted by the pan document then you should have received ample notification from the 401k custodian before any such transfers were processed.   

Definitely "no" regarding the broker dealer permitting your husband to initiate a rollover.  This couldn't happen without someone forging your signatures on the account documents.  One caveat would be if you had passed away then of course he would be permitted to roll the 401k into his own IRA.  So yes, this does sound like a securities violation and you should make further inquiries to see exactly what happened, file a complaint if your money was mishandled and take further legal action as you see necessary. 

June 2016
June 2016
June 2016
June 2016