If the company you selected to manage your IRA or other retirement account is sold or merges with another company, consider submitting a fresh beneficiary designation form. Today I had yet another scenario where the IRA custodian could not locate the beneficiary form post-merger and it is going to make a difference.
When completing the form, in addition to the primary beneficiary, designate an alternate beneficiary(ies). If naming more than one beneficiary, be sure that the percentages total 100%. Seriously.
If you cannot recall the beneficiaries you named, submit a new designation form to confirm you have the beneficiaries you want. Don’t fall into the custodian’s default – and that varies company by company.
It will only takes a few minutes, you might even be able to download the form, and can ensure that your directions can be located after your death.
