How to Designate a Beneficiary for Your 401(k)

Designating a beneficiary for your 401(k) ensures that your retirement savings go to the right person—or people—if something happens to you. It’s one of the most important (and easiest) steps you can take to protect your loved ones.

A beneficiary is the person or entity (such as a trust or charity) who will receive the money in your 401(k) if you pass away. You can name:

• A primary beneficiary (the first in line to receive the funds)

• One or more contingent beneficiaries (who receive the funds only if your primary beneficiary has also passed away)

If you don't designate a beneficiary:

• Your 401(k) may be distributed according to your plan’s default rules or state law.

• This can lead to delays, legal complications, or distributions to unintended individuals.

Keeping your beneficiary information up to date helps:

• Ensure your wishes are honored

• Avoid probate

• Provide faster access to funds for your loved ones

1. Log in to your 401(k) account online
   In the "My Profile" section go to the "Beneficiaries" screen

2. Complete the beneficiary designation form
   Provide full legal names, relationships, and percentages if naming more than one person.

3. Submit required documentation

   • If you're married and name someone other than your spouse as your primary beneficiary, most plans require spousal consent—usually in writing and notarized.

   • You may also be asked to verify identity or provide signatures.

4. Review and confirm
   Your designation should be visible in your account once submitted. Review it regularly, especially after major life events.

• Keep it current: Update your beneficiaries after marriage, divorce, birth of a child, or death of a loved one.

• Be specific: Use full names and Social Security numbers to avoid confusion.

• Avoid naming minors directly: Consider naming a trust or guardian if your beneficiaries are underage.

• Review annually: Include this as part of your yearly financial check-in.

If you’re not sure how to access or complete your beneficiary form:

• Call NestEggs for step-by-step help

Designating a beneficiary gives you peace of mind and ensures your retirement savings are handled according to your wishes. It only takes a few minutes—but it makes a lasting impact.