Your beneficiaries can be individuals or entities, such as trusts or organizations.
During enrollment, you’ll have an opportunity to name a primary or contingent beneficiary(s) and the percent of the accumulation each is to receive. It’s a good idea to name both primary and contingent beneficiaries to ensure your wishes are covered.
If you do not select a beneficiary when you enroll, "your estate" will be selected as your beneficiary. You can change your beneficiary at any time.
When you enroll in a retirement plan, it’s a good idea to specify one or more beneficiaries who will receive the financial benefit of your retirement savings upon your death.
“Your estate” is all of your financial assets combined together — houses, cars, investments, furniture or anything else with monetary value. This grouping of your assets happens after your passing. Since the money you’ve saved in your retirement plan is a financial asset, then it will become part of your estate. Once all of the assets in your estate have been distributed to your beneficiaries, heirs or claimants, your estate will no longer exist.
If you’d like to select beneficiaries for your retirement plan(s) today, you’ll need to have the following information at hand:
- The names and dates of birth for anyone you’d like to add as a beneficiary
- Tax ID # of any trust or organization you’d like to make a beneficiary
When you enter the percentage for how much of your investment you’d like that beneficiary to receive, you’ll need to make sure your percentages add up to 100%. For instance, if you have two beneficiaries, and you indicate that you want one of them to receive 60% of any assets you have in your retirement account, then you’ll need to assign the other beneficiary 40% so that the total is 100%.