Tenancy by the Entirety & Community Property
Marital ownership forms: TBE protects against one spouse's creditors; community property splits marital assets.
What is Tenancy by the Entirety & Community Property?
Tenancy by the entirety is available only to married couples in some states: like JTWROS, but neither spouse can sell or encumber the asset alone, and it is generally protected from creditors of just one spouse. In community property states, assets acquired during marriage belong half to each spouse; with right of survivorship (CPWROS), the survivor takes all and both halves may receive a step-up in basis.
Tenancy by the Entirety & Community Property: a worked example
A creditor of one spouse generally cannot reach a home the couple holds as tenants by the entirety.
More terms in Retirement Plans, Accounts & Trading
IRA Rollovers vs. Transfers
60-day rollovers are limited to one a year; direct transfers are unlimited.
10% Early Withdrawal Penalty & Exceptions
Distributions before 59 1/2 cost 10% extra, unless an exception applies.
Solo 401(k)
A 401(k) for a self-employed owner with no employees other than a spouse.
Defined Benefit Plan
A pension promising a specific benefit; the employer bears the investment risk.
Defined Contribution Plan
An individual account plan whose payout depends on contributions and returns.
403(b) Plan
A salary-deferral plan for public schools and 501(c)(3) nonprofits.
457 Plan
Deferred compensation for state and local government employees.
SIMPLE IRA
A low-cost plan for employers with 100 or fewer employees.
All Retirement Plans, Accounts & Trading terms · Full glossary