The answer is yes! Most people spend countless hours determining how their money will be divided among their family and loved ones. They even go so far as to have it formalized in their will or trust.
Unfortunately, when it comes to naming the beneficiaries on 401(k) and other retirement accounts, most people spend only minutes making this important decision. Furthermore, many have not reviewed the decisions in 10, 20, or even 30 years. A lot can change during that period of time (additional children, death, divorce).
Retirement accounts are distributed based on who is listed on a company’s signed-beneficiary form. Even if you have elected to have your assets divided a specific way in your will or trust, if your 401(k) does not match it will not happen.
Reviewing your beneficiary designations can prevent an undesirable outcome at your death. If you have questions or need help in reviewing your beneficiary designations give our office a call (800) 748-4788.