I Need to Practice What I Preach

IRA Beneficiary Designations —

Backdrop for this post is that we lawyers typically take great care of our clients, but due to time-limits, fatigue, family, etc., tend to disregard our own personal affairs.   I candidly state that most evenings I look at my personal in-box as I am about to leave my office and sigh with a routine “I will take care of that later .   .   .”.    The problem is my client work constantly displaces this personal “later”.

The point of this post is that I recently rolled over my 401(k) plan into an IRA.  As part of the roll-over process the new IRA custodian sent me various papers, emails, and contacted me with a few phone calls as part of the process.

A month later (yesterday) I finally looked at my to-do list about the IRA account beneficiary designation and realized I had no designation in place.   I quickly prepared a new IRA beneficiary designation with my wife as primary beneficiary, kids as secondary beneficiaries.

Without going into the income tax horror that would have resulted if I had died without this designation in place, let’s just say it would have been stupidly very costly to my family.

The point of this post:

Stop what you are doing now and verify (with a call or email to your retirement account custodian) and make sure your beneficiary designation is up to date. Yes, right at this moment. No delay.










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