Are Your Beneficiaries Out of Date?

Over the course of a lifetime, assets in an IRA or an employer-sponsored retirement plan can potentially grow to six or seven figures, making up a significant portion of your estate.¹ Did you know that when you die, these assets will go directly to the beneficiary listed on the plan — regardless of instructions in your will?

How long has it been since you updated your beneficiary designations? Have you even thought about them since you established the plan? Neglecting to keep retirement plan beneficiaries current could bring about unexpected consequences. Consider the following:

Chances are you’ve spent a lot of time planning the future distribution of your estate. By keeping retirement plan beneficiaries up to date, you can help ensure that these assets will also be distributed according to your wishes.

1) Distributions from traditional IRAs and employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59½, may be subject to an additional 10 percent federal income tax penalty.

© 2002 Emerald Publications

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