What are the rules for naming beneficiaries on my IRA?

What are the rules for naming beneficiaries on my IRA?

When naming beneficiaries on your IRA, you can choose individuals, trusts, or charities. It's important to ensure that the names are clear and that you update them as needed.

Can I name multiple beneficiaries?

Yes, you can name multiple beneficiaries. You can specify the percentage each beneficiary will receive, ensuring that the total equals 100%.

What happens if I don't name a beneficiary?

If you don't name a beneficiary, the IRA will typically go to your estate, which may lead to probate and potential tax implications.

Are there any age restrictions for beneficiaries?

There are no age restrictions for beneficiaries, but if you name a minor, a guardian may need to be appointed to manage the funds until they reach adulthood.

How often should I review my beneficiary designations?

It's a good practice to review your beneficiary designations at least every few years or after major life events, like marriage or the birth of a child.