Ask Terry Questions 401K beneficiary

401K beneficiary

By Terry Savage on June 02, 2019 | Financial Planning / Retirement

I have a 401k and a trust. I want to leave to 2 of my kids. How do I set up the beneficiary.

Terry Says

If you have a 401(k) plan, you must go to your HR department and ask for the beneficiary forms, simple to fill them out.  Don’t delay, because this is so important.  You can specify that you want them to inherit equally.  And be sure to tell them to covert this to their own IRA, and keep th emoney growing tax-deferred as long as possible after your death.

Please write back and specify what you mean by “trust.”  If it is a Revocable Living Trust as part of your estate plan, then the attorney who drew up the trust documents likely named a beneficiary according to your wishes.  Double check.


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