Are you getting remarried? What does getting remarried mean for your 401K or retirement plan beneficiaries? Many people are unaware of how getting remarried impacts the beneficiary of their corporate retirement plans like 401(k) plans. 

Under the Federal Employee Retirement Income Security Act (ERISA) your spouse is automatically considered the 100% beneficiary of your corporate retirement account. Your new spouse will be the beneficiary even if you previously named your adult children or a living trust as beneficiary.

This situation can be particularly tricky if you have children from a previous marriage, as having your new spouse as the primary beneficiary might not be what you intended. For many people their company retirement account is their largest asset creating major issues for inheritances.

There are two ways to avoid this result:

• First, have your new spouse sign a notarized beneficiary waiver and submit it to your employer or your 401(k)-plan administrator. Make sure to follow up and confirm that the waiver has been processed and your beneficiaries have been updated. It's not uncommon for these forms to get misplaced.
• Second, if you are over 59 ½, or if the 401(k) plan is with a prior employer, most company retirement plans allow you to roll your retirement account into an Individual Retirement Account (IRA). ERISA's rules about automatically deeming a spouse the 100% primary beneficiary do not apply to IRA accounts. You are free to name whomever you want as beneficiary of your IRA account. We often recommend doing this before getting remarried to avoid potential complications.

By taking these steps, you can ensure your retirement assets are distributed according to your wishes. Learn more at http://www.BlueChipEstatePlanning.com Call us to schedule a consultation 248-873-3244