When you’re gone, you want to make sure that your family has the right to claim any benefits that are due and owing to you from your retirement account. Second, if you become legally incapacitated and can no longer function enough to claim and manage your benefits from your retirement accounts, then you will want to make sure you appoint someone to be in charge, typically a family member. In most retirement account plans, there is an option for you to name a beneficiary. The beneficiary is the person that you appoint to receive any benefits left over in your retirement account after your death (it is easiest to appoint a beneficiary of your personal retirement accounts here rather than in your will). If you die with money remaining in your retirement account, the person you named as beneficiary will receive the benefits left over in the account without having to go through probate court. 401(ks) and Pension Plan InformationFor some types of retirement accounts, such as 401(k)s and most pension plans, the law requires that you name your spouse as your beneficiary unless he or she signs a form that gives up this right. For other accounts, such as IRAs and employer profit-sharing retirement plans, you are free to name any beneficiary that you wish. Keep in mind that if you live in a community property state (such as California), your spouse is automatically entitled to half of any money in your retirement account that you earned while married. If you and your spouse do not want to leave all of your retirement accounts to each other, you should research the laws in your state and plan accordingly. Your surviving family members may be eligible to receive your Social Security benefits after your death if they meet certain requirements. Oftentimes, your family members may receive the full retirement amount that you would have received. In order for your spouse to qualify to receive your Social Security benefits, he or she must be at least 60 years old; or at least 50 years old have be disabled; or any age if your spouse is caring for your child that is under the age of 16 years old or is disabled and receiving Social Security benefits. In order for your children to be eligible to receive your Social Security benefits, they must be unmarried and less than 18 years old; or between 18 and 19 years old and attending elementary or secondary school full time; or over the age of 18 but severely disabled, with the disability starting before he or she turned 22. Get a List of All of Your Personal Retirement Accounts and Benefits At a bare minimum, you should make a list of all of your retirement accounts and benefits, whether or not you are receiving payments from the account currently. This list should include things like your employer-sponsored pension or retirement plans; IRAs, including traditional, Roth, SIMPLE and SEP-IRAs; and Keogh, employer profit-sharing plans, or 401(k)s you set up for being self-employed as a small business owner. Then, for each account that you have in the list, mark down the following information in an easy to understand format like, the name of the entity that manages the account (such as a bank or financial manager); The number of the account or some other way of identifying it; Contact information (phone number, address) of the person in charge of your finances; Whether you currently are receiving benefit payments and how much the payments are; The beneficiary listed on the account; and the location of your financial plan statements. You should also include your Social Security benefits in this list as well. Estate Planning Lawyer Free ConsultationWhen you need estate help, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
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Fiduciary Duties and Business Judgment in a Business Divorce via Michael Anderson https://www.ascentlawfirm.com/retirement-accounts/
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About MeIn 2009 I was creating marketing channels for barbie dolls in Nigeria. Spent a weekend implementing dogmas in Naples, FL. Won several awards for writing about toy trucks in Mexico. Spent 2001-2007 analyzing deodorant in Pensacola, FL. Spent 2001-2004 researching heroin in Miami, FL. Enthusiastic about writing about clip-on ties in Naples, FL. Archives
June 2019
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