7 Tips to Designate Beneficiaries for Your Retirement Accounts That Will Make You Purrrrr

How to Determine What Percentage of Your Assets Will Go to Each Beneficiary

“Here comes another Cat-astrophy!” So, Catwoman just found out that she has to pick bene-fish-iaries for her retirement accounts, annuities and life insurance policies. Now, she’s scratching up the whole city. What on Eartha! Did she just have a feline freak out? Doesn’t she know that all of her lives are going to run out one day? She needs to decide who’s going to get her whole kitten caboodle. Come on girl, don’t be such a sourpuss!

We, at Achieve Financial Group, are in hot purr-suit of the Gotham City kitty. We need to track her down and give her some Newmarvelous tips on what to consider before choosing her heirs.

  1. Spouses can generally inherit assets from one another without generating estate taxes.
  2. Avoid taxes on an inheritance by designating a charity or non-profit group as an heir
  3. Most individual retirement accounts like 401(k) accounts will force beneficiaries to take the money now in a lump sum payment and pay income taxes on the full amount.
  4. Roth IRAs are tax exempt because you have already paid taxes on the money in them.
  5. Underage children cannot directly inherit assets from an annuity, a retirement plan or a life insurance policy.
  6. You can create a testamentary trust or a revocable living trust for minors or others.
  7. You can create a special needs trust for beneficiaries with mental disabilities, if they are unable to handle their own affairs.

Don’t worry Selina aka Catwoman, you’ll land on your financial feet. In fact, take a Halle-day and enjoy the sunny Meri-wether. Why? Because now you can make the best decision when you choose beneficiaries for your retirement accounts. Remember, every litter bit counts!  #AchieveMore in 2018.