James A. Springer

401(k)/ Individual Retirement Plans                      

updated 9/15/2011

As we and our family members get older, it is extremely important that we update beneficiary designations on retirement plans.  The rules for 401(k)s differ from IRA plans.  When one spouse dies, it is common for the living spouse to change beneficiary designations to the children.  However, if the spouse remarries in later years and then dies his new spouse may inherit the 401(k) assets, even though the intent was to leave the assets to the children.  This differs from IRA rules in which beneficiary designations would take precedent. 

If you are a participant in a 401(k) plan with your employer, or have individual retirement accounts, it is important that you consult with plan’s advisors.  This will prevent unforeseen problems.