Avoiding Non-Spouse Beneficiary Mistakes - Inheriting an IRA can be a financial windfall. Still, it's essential to understand the complex and specific rules that apply to non-spouse IRA beneficiaries to avoid critical errors.
Click on the link below to read Avoiding Non-Spouse Beneficiary Mistakes in 5 Easy Steps
July's theme is Beneficiaries and this is the final blogpost on the subject. This post is directed to the beneficiary, but we can all learn from it. We want to encourage you to review your beneficiary information and to contact our office or your financial advisor to make any updates or changes needed. Providing your beneficary/s with your financial advisor's information or providing the financial advisor with the beneficiary's contact information, opens a line of communication prior to the unfortunate event and helps to avoid mistakes and misinformation.
Below are a few tips you may find helpful:
1. Gather each of the beneficiary's information: Full name, date of birth, social security number, address, and phone number. Indicate whether this person/s will be a Primary or Secondary beneficiary and what % will they be receiving. This information is necessary when setting up your beneficiary/s and provides the contact information needed.
2. For a charity: Name of charity, address, and phone number. EIN # if applicable. Will the charity/s be a Primary or Secondary beneficiary and what % will it receive?
3. Make the beneficiary/s aware they have been named and supply them with your financial advisor's information. *Suggested but not required and does not apply to a charity.
4. Contact our office or your financial advisor as soon as there has been a beneficiary change. This includes; a death, divorce, birth address/phone number change, etc.
5. Annually review your beneficiary information with your financial advisor and make any changes and/or updates needed.
You want to do all that you can to avoid a Pension Pickle*. This article refers to a spouse but can apply to a friend, relative, and a charity, don't let this happen to them.
*You can read about the Pension Pickle in the July 7, 2022 blog on our website.
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David S Dixon, CFP®