Tag: 401(k)

Should I Make my Young Child or Grandchild the Beneficiary of my Retirement Account?

Oftentimes, clients want to leave a retirement account to a minor child or grandchild (one who is under 18 years old). Sometimes a spouse is the primary beneficiary (would be first in line to receive the account upon the owner’s death) and minor children are the contingent beneficiaries (would be second in line to receive the account upon the owner’s death).

It is generally a good idea to have a named beneficiary of a retirement account, like a Traditional IRA or 401(k) or other tax deferred retirement account, because a named beneficiary is able to stretch distributions throughout the beneficiary… Read the rest