We may not want to think about what happens to our assets in the event of our death, but it is important to be proactive. Choosing a beneficiary ensures that you get to choose who gets your assets.
What is a beneficiary?
A beneficiary is the person who will receive the cash benefit of the policy or account in the event of your death. For your 401(k) Plan, you will be asked to name at least one beneficiary.
Why is it so important?
If you do not name a beneficiary, your money may not end up where you want it to go. Even worse, without designated beneficiaries, your assets will have to go through probate, which eats up time and money during an already very emotional time. Even if you have a will, beneficiary designations supersede your will.
How do I select a beneficiary?
You may designate or update your beneficiary anytime during the year at NetBenefits. If you select more than one beneficiary, you will designate the percentage of the money each individual, trust or organization will receive. If you are married, your spouse will be the primary beneficiary for your 401(k), unless your spouse consents to another person being named as your primary beneficiary.
Review often.
Remember, life events like birth, death, marriage and divorce may change your beneficiaries. You should make it a habit to review your beneficiaries at least once per year to verify that information is current.
Learn more about your 401(k) Plan.
Questions?
Fidelity is there to help. Visit NetBenefits or reach out to a representative with any questions at 866-783-5225.
