How to Name Beneficiaries on Retirement Accounts

Learn how to properly designate beneficiaries on 401(k)s and IRAs to ensure your money goes where you want it to go.

1. List your primary beneficiaries with percentages. Write down who gets your retirement money first — your spouse, kids, or other people. Assign percentages that add up to 100%. For example: spouse 60%, child A 20%, child B 20%. Be specific with full legal names and relationships, not nicknames.
2. Choose contingent beneficiaries as backups. Pick who gets the money if your primary beneficiaries die before you do. This prevents your retirement account from going through probate court if something happens to your first choices. Use the same percentage system and specific naming.
3. Contact each account provider directly. Call or log into each retirement account separately — your 401(k), traditional IRA, Roth IRA. Each account needs its own beneficiary form. Don't assume one form covers multiple accounts, even at the same company.
4. Fill out the official beneficiary forms. Complete the forms with full legal names, birthdates, Social Security numbers, and addresses. Double-check spelling and percentages. Submit the forms according to your provider's requirements — some need notarization or witness signatures.
5. Keep copies and update regularly. Save copies of all completed forms in your records. Review and update beneficiaries after major life events like marriage, divorce, births, or deaths. Most financial advisors recommend checking beneficiaries every 3-5 years even without major changes.
6. Tell your beneficiaries where to find account information. Give your beneficiaries a list of your retirement accounts, account numbers, and provider contact information. Store this with your other important documents. They'll need to know these accounts exist to claim them.