Beneficiary for SEP/IRA

[Anonymous]

Filling out paperwork for SEP/IRA from employer and I am trying to figure out the best way to designate a beneficiary. I am thinking of having my son as primary (less than one year old) and my mother as contingent. Partner and I are not married so I am unsure whether I want to designate him as primary/contingent. If a beneficiary is not listed, then it goes to my estate(?)

My life insurance policies (completed pre-child) are something like 50% to parent 50% to partner since in the event of my and/or my partner's passing, my mom would save the money (I trust her) and my partner would use it for raising our kid.

Are there any LT financial consideration to take into account when determining whether to list a beneficiary or not? For example- if we get married, does my partner automatically have access to the IRA account in the event of a divorce or my passing? Concerns with designating a beneficiary under the age of 18?

Trying to be smart about this since we are not married and we have a child.

Thanks!

[Anonymous]

Yes, if you get married, your spouse becomes the beneficiary of the retirement plans per federal law. Not sure how life insurance works, though.

Your plan seems fine; just remember to update it as your mom ages.

I think DC still has common-law marriage, too, so if you live there this may work differently if you live together but aren't married.

[Anonymous]

Anonymous wrote:Yes, if you get married, your spouse becomes the beneficiary of the retirement plans per federal law. Not sure how life insurance works, though.

Your plan seems fine; just remember to update it as your mom ages.

I think DC still has common-law marriage, too, so if you live there this may work differently if you live together but aren't married.

SEP IRA does not require spouse to inherit. I just inherited one from my late mother, who was married at the time of her death. Her spouse did not even have to sign an acknowledgement.

[Anonymous]

Leave it to your child in less you marry then spouse/child.

[Anonymous]

Anonymous wrote:Filling out paperwork for SEP/IRA from employer and I am trying to figure out the best way to designate a beneficiary. I am thinking of having my son as primary (less than one year old) and my mother as contingent. Partner and I are not married so I am unsure whether I want to designate him as primary/contingent. If a beneficiary is not listed, then it goes to my estate(?)

My life insurance policies (completed pre-child) are something like 50% to parent 50% to partner since in the event of my and/or my partner's passing, my mom would save the money (I trust her) and my partner would use it for raising our kid.

Are there any LT financial consideration to take into account when determining whether to list a beneficiary or not? For example- if we get married, does my partner automatically have access to the IRA account in the event of a divorce or my passing? Concerns with designating a beneficiary under the age of 18?

Trying to be smart about this since we are not married and we have a child.

Thanks!

See a lawyer and write a living trust and will.

The primary beneficiary should be an adult on behalf of your child (forgot the term for it)
Make sure your child gets a portion of the money each year over time so there are less opportunities for someone to trick your child out of the money

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes, if you get married, your spouse becomes the beneficiary of the retirement plans per federal law. Not sure how life insurance works, though.

Your plan seems fine; just remember to update it as your mom ages.

I think DC still has common-law marriage, too, so if you live there this may work differently if you live together but aren't married.

SEP IRA does not require spouse to inherit. I just inherited one from my late mother, who was married at the time of her death. Her spouse did not even have to sign an acknowledgement.

He likely did have to sign a waiver when she originally named you as the beneficiary. You can always name a beneficiary other than your spouse, but by default they get retirement plans if you have not done something proactive to change that. Most plans require the spouse to sign off if you want to designate someone other than your spouse. (I imagine this is to discourage fraud/elder abuse situations, but not sure.)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes, if you get married, your spouse becomes the beneficiary of the retirement plans per federal law. Not sure how life insurance works, though.

Your plan seems fine; just remember to update it as your mom ages.

I think DC still has common-law marriage, too, so if you live there this may work differently if you live together but aren't married.

SEP IRA does not require spouse to inherit. I just inherited one from my late mother, who was married at the time of her death. Her spouse did not even have to sign an acknowledgement.

He likely did have to sign a waiver when she originally named you as the beneficiary. You can always name a beneficiary other than your spouse, but by default they get retirement plans if you have not done something proactive to change that. Most plans require the spouse to sign off if you want to designate someone other than your spouse. (I imagine this is to discourage fraud/elder abuse situations, but not sure.)

Nope. I was with as she changed it. She was diagnosed with cancer. SEP IRA’s have different rules from other vehicles.