Beneficiaries & Succession
10 articles
Beneficiaries
7 articlesWho can I designate as a plan beneficiary?
Your beneficiary designation decides who inherits your retirement account, and you can name virtually any person or entity for that role. There are no IRS restrictions on who you choose, so the risk here is not picking the wrong beneficiary, it is ...
What is the difference between primary and contingent beneficiaries?
Primary and contingent beneficiaries represent two tiers of inheritance for your retirement account. Primary beneficiaries inherit first. Contingent beneficiaries inherit only if no primary beneficiary is available to receive the funds. Primary ...
Is there a maximum number of beneficiaries I can designate?
There is no IRS limit on the number of beneficiaries you can name for either an IRA or a Solo 401(k). You can designate as many primary and contingent beneficiaries as your situation requires. IRA accounts: a practical note The IRA custodian ...
Do I have to name beneficiaries for my account?
Naming beneficiaries for your IRA or Solo 401(k) is not technically required, but skipping this step is unwise. If you die without a valid beneficiary designation on file, your account passes to your estate by default. Estate inheritance is the least ...
Can I change my beneficiary designation in the future?
Yes. You can update your beneficiary designation at any time. The most recently completed and submitted form always controls, regardless of what any prior form or your will may say. IRA accounts To change your IRA beneficiary designation, submit an ...
Is spousal consent required for beneficiaries?
If you are married, your spouse may have to provide written consent any time you name someone other than your spouse as a primary beneficiary, or reduce your spouse's share below 100%. IRA accounts IRA Resources requires spousal consent for all ...
How do I designate beneficiaries for my Solo 401(k)?
Beneficiary designation for a Solo 401(k) is handled directly by using forms included in your plan documents. There is no custodian involved — you complete, sign, and retain the forms yourself. Which form do I use? Two forms are available depending ...
Succession
3 articlesWhat is a successor trustee or manager?
A successor trustee or successor manager is the person you designate to step in and administer your plan's entity when you die or become incapacitated. This is an administrative role, not an inheritance role. The two are entirely separate. How the ...
What happens to an IRA plan when I die?
When you die, your IRA and the entity it owns, the LLC or trust, pass to your designated beneficiaries. The process involves two parallel tracks: administering the entity and transferring the IRA itself. Both need to happen in sequence. The entity ...
What happens to a Solo 401(k) plan when I die?
When you die, your Solo 401(k) plan passes to your designated beneficiaries according to the beneficiary designation form in your plan records. Unlike an IRA plan, the Solo 401(k) has no custodian to manage this process. Administration and transfer ...