Designating Retirement Plan Beneficiaries
Planning for your retirement is more than just deciding how to spend your money. The choices you make now may allow you to provide for your family’s needs even after your death. Here are the helpful tips to plan:
Keep your family informed
Be sure your spouse, domestic partner or another responsible person knows what to do if something were happen to you, including:
- Where to find wills, health care proxies and powers of attorney
- Where to find life insurance policies, investment accounts, IRAs, retirement plans, property deeds, annuties, savings bonds, pension plans, etc.
- Details about any investments
- Which assets to use first
- Where to go for help if they have questions
Create a Will
A will can help your heirs avoid probate court costs. It’s a good idea to review your will every few years or when you experience a significant life change or financial change.
Check your beneficiaries today
Choosing a beneficiary means you control who receives your benefits from your plan account if you die before your account is fully paid out.
The retirement plans rely on the most recently filed and properly completed copy of your beneficiary designation. If you haven’t kept this information up-to-date, your remaining account balance could pass to beneficaries who may no longer be appropriate. It is important to know that other documents, such as your will, do not override your beneficiary designation. You should also carefully select contingent beneficiaries in the event your primary beneficiaries pre-decese you. It is good to include all requested information regarding your beneficiaries and avoid the use of any nicknames.