Are your beneficiary designations giving more to the IRS than you expect?

Do you want to leave the IRS a tip when you die? Not many people do, but if you do not carefully consider the beneficiary designations on your investment accounts, you could be giving the IRS some extra income.

Whether you use Roth IRAs, pre-tax accounts such as Traditional IRAs or 401(k)s, or non-qualified accounts, you need to consider the current and future tax consequences of the beneficiaries that you name on those accounts.

It is important that you regularly review beneficiary designations to ensure that your desires for those resources are met. In this video we walk through a few ways that you can think critically about beneficiary designations for various account types.

This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.