Americans Risk Costly Errors with 401(k) and IRA Beneficiary Designations
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Americans Risk Costly Errors with 401(k) and IRA Beneficiary Designations

Many Americans overlook updating beneficiary designations for their 401(k) and IRA accounts, a costly mistake that can override wills and lead to unintended heirs or tax penalties. These accounts pass directly to named beneficiaries, bypassing probate but subject to specific distribution rules. Experts advise reviewing and updating these forms every two to three years after major life events to ensure savings go to intended recipients and maximize tax benefits.

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