Love...

February tends to be a month most associated with hearts, flowers, chocolates and more importantly, LOVE. In August 2024, we focused our Newsletter on Beneficiary Designations, and why they matter. Why it’s important for you to get your ‘house in order’, so that if something unexpected should happen, your hard-earned retirement savings are distributed to those you love most.

?? Additional Blog Resource Getting Your House In Order | My Retirement Plan - SUITE(k), a division of S.E.E.D.

This month, we are going to highlight how to navigate a distribution if you have been designated as a beneficiary by someone who loves you.

Losing someone you love is an extremely emotional experience. It takes time to grieve and for the emotions to settle down enough to allow you time and clarity to wade through the details of death. With good luck, your loved one completed a Beneficiary Designation Form that clearly indicates who benefits from their account upon their death. This greatly simplifies matters.

We caution you against making important financial decisions when emotions run high. Give yourself time. When you are ready, and have a good handle on the estate plan, contact the plan administrator to discuss your options as a beneficiary in their qualified plan. Notify them that you are a designated beneficiary of their former employee and ask what steps are necessary to take ownership of your share of the account as a named beneficiary. Until there is an account reflecting the updated ownership, you will be unable to make any decisions regarding the account or requesting a rollover or distribution. A copy of the Death Certificate will be required to complete this process.

The employer’s retirement plan document establishes the distribution options available to you, including satisfying the Required Minimum Distribution (RMD) rules. The plan administrator (employer) will provide you with a summary of the distribution options. If you are the spouse of the account owner, you may have more distribution options available to you in the plan than a non-spouse beneficiary. We encourage you to seek the advice of a tax planner prior to finalizing any distribution decisions.

Love comes in a lot of forms. One of the simplest, easiest, most important ways to show people you love that you care, is to make sure that your Beneficiary Designation is current, intentional and recorded. Take the time/ make the time to make sure yours is up to date.

If you need help figuring out where to go to designate a beneficiary, make changes or navigate a distribution as a beneficiary, please reach out to us at: www.401ktime.com/contact. We would be happy to help.

?? Wishing you a happy February filled with all the things LOVE brings.