Life gets busy, and updating your 401(k) beneficiaries often gets pushed to the backburner. But if your employer recently switched 401(k) recordkeepers, now’s the perfect time to double-check your beneficiary designations.
When employers change recordkeepers, there’s a chance that your current beneficiary information won’t automatically transfer. It’s easy to overlook, but verifying your beneficiaries can save your loved ones time and hassle down the road. Here’s why it’s worth taking a few minutes to review:
What is a Beneficiary?
According to Investopedia, “A beneficiary is a person (or entity) who is designated to receive the benefits of property owned by someone else. Beneficiaries often receive these benefits as part of an inheritance.”
Who can I list as a Beneficiary?
Married? Your spouse is often your primary beneficiary, but if you have others in mind (like a child or parent), you may need to submit an additional form.
Unmarried? You have more flexibility in who you can list—whether it’s a family member, close friend, or anyone else. Just keep in mind, pets don’t qualify!
Note: please have the beneficiaries full name, address, and social security (ssn often required).
Why should I list a Beneficiary?
The primary reason is simple: it’s the easiest way to transfer ownership of your 401(k) if something happens to you. Without a beneficiary, your 401(k) could get tied up in probate, which means your loved ones might have to go through lengthy and costly legal proceedings. Not only is this frustrating, but it can delay the process during an already difficult time.
What should I Do Next?
Next Steps:
Step1: Log in or Call Your 401(k) Provider
Option 1: Log in online to your recordkeeper’s site (it should only take a few minutes).
Option 2: If you prefer to call, plan for a 15-minute conversation to ensure everything’s up to date.
Step 2: If you don’t have a beneficiary listed, now’s the time to add. Gather your beneficiaries full name, address, and social security number
Source: https://www.investopedia.com/terms/b/beneficiary.asp
Did You Know?
Your employer sponsors this financial wellness benefit from Francis LLC. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
