In short, YES, you can designate a trust as the future beneficiary of your 401(k) retirement account.
Leaving your inheritance in a trust allows you to control where and how your assets are divided after your death. Learn the pros and cons to this type of legacy planning, given IRS rules and limitations.
Cut through the complexity of choosing and customizing the right retirement plan for your small business. You'll be ready to go in just a few clicks.
How many employees do you have?
A trust beneficiary for a 401(k) account is ideal if any of the following scenarios applies to you:
It is possible to roll the funds into a Stretch IRA to ensure that only the Required Minimum Distributions are paid out to recipients named in the trust, month by month. Passing money on through an IRA or 401(k) beneficiary form allows you the ability to bypass the expense of probates and lawyers.
There are certain caveats to designating your 401(k) to a trust beneficiary:
Ubiquity is a low-cost 401(k) plan provider offering flat fee customer service for employers and employees. We invite our investors to contact us at any time with questions such as this, as we are always happy to help with their retirement planning needs – without charging exorbitant financial advisory fees.