While IRAs and 401(k)s are commonplace, many IRA owners and 401(k) plan participants have a hard time answering a common question. They aren't sure who they have named as the account beneficiary. A little attention to detail today may help to prevent surprise or disappointment later.
When was the last time you looked at your beneficiary forms? Decades may have passed since you opened that IRA or enrolled in that 401(k) plan. In that moment, you may have made one of your biggest estate planning decisions. You need to make sure your decision is still the right one.
What takes precedence - a will, a family trust, or a beneficiary form? In all but rare situations, the beneficiary form comes first. If you die, your IRA or 401(k) custodian (i.e., the investment company that hosts your retirement savings account) will determine who gets the assets in your IRA or 401(k) per your request stated on the beneficiary form.
IRAs and 401(k)s commonly have primary beneficiaries (first in line to the assets) and contingent beneficiaries (second in line, third in line, etc.). The important thing is to have the beneficiary designations up to date.
We can help you review your beneficiary forms.It is vital to make sure that your IRA or 401(k) money will go where you want it to go if you pass away. We can also help you with your options if you inherit IRA funds or 401(k) funds.
Contact Amy Brandts or Nancy Rick for assistance.
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