How to Review Beneficiaries on Your IRA, 401(k), and Life Insurance Policy

Start by asking each provider for the beneficiary designation it currently has on file. For an IRA, contact the bank or brokerage that holds it. For a 401(k), contact the plan administrator, including the administrator of any account left with a former employer. For life insurance, contact the insurer or, for coverage through work, your benefits office.

Even if your estate plan names the same people throughout, check each account and policy separately. A confirmation from your IRA provider tells you nothing about the form on file with your former employer.

Ask for the current record

You can use the same opening question for all three:

“Please send me the current beneficiary designation for this account or policy. Who is listed as primary, who is listed as contingent, and what share is assigned to each?”

A primary beneficiary is first in line to receive the benefit. A contingent beneficiary is a backup. If more than one person is listed, check the spelling of each name and each person’s share. Ask what happens under this particular account or policy if one of those people dies before you. That question matters especially when you’ve named several people in the same group. IRS guide to retirement beneficiaries · Insurance regulators’ guide to life insurance beneficiaries

IRA: Check who would inherit and who is listed as backup

Suppose your IRA confirmation shows your spouse as the sole primary beneficiary and the contingent field is blank. You intended your two adult children to split the account equally if your spouse dies before you. Ask the provider: “If my spouse dies before me and I leave this form as it is, who would receive the IRA under my account agreement?” Now you can compare the provider’s answer with your intentions and decide whether to update the form.

If you are considering naming your living trust as the IRA beneficiary, bring the current designation and your trust document to your estate-planning attorney and tax adviser before submitting a change. The identity of the beneficiary can affect how quickly inherited funds must be withdrawn. A surviving spouse may have options other beneficiaries do not. IRS guide to inherited retirement accounts

401(k): Check the plan’s rules for your spouse

If you’re married and want someone other than your spouse to receive some or all of your 401(k), ask the plan administrator: “Does my spouse need to consent to this designation? If so, which form do we use, and who must witness the signature?”

In most 401(k) plans, a surviving spouse generally has a right to the benefit. Naming someone else generally requires a spouse’s written consent witnessed by a notary or plan representative. If you enrolled while single and later married, confirm that the plan has your current marital status. If it’s an old account, get that answer from the former employer’s plan administrator. U.S. Department of Labor guidance on surviving spouses and 401(k) plans

Life insurance: Check who receives the payout for each policy

Use the policy number when you call. If you own an individual policy and also have coverage through work, request a separate confirmation for each. Check names, shares, and contact information. If you intend to provide for a minor child, ask the insurer how it handles payment to a minor and discuss the arrangement with your estate-planning attorney before changing the designation. Insurers generally do not pay proceeds directly to minors. National Association of Insurance Commissioners’ beneficiary guide

There’s one more practical step: make sure a trusted person knows the insurer’s name, the policy number, and where to find the policy. A correct designation is easier for your family to act on when they know whom to call. NAIC guidance for policyholders

Finish the review

Use Appendix C: Beneficiary Audit Sheet (PDF) as you work through each account and policy. If the provider’s record matches your intentions, save the confirmation and note the review date. If you submit a change, keep it marked pending until you receive the updated designation and check the names and shares yourself.

Return to the sheet after a marriage, divorce, birth, or death in the family. You’ll have a record of what you last verified and a short list of providers to contact.

For the full workbook, explore The 21-Day Revocable Living Trust Blueprint.