401K Beneficiary
A couple gets divorced and the husband then lists his 2 children as primary beneficiaries on his 401K. He later remarries. If he does not update his beneficiary form, who will receive the proceeds upon his death?
A couple gets divorced and the husband then lists his 2 children as primary beneficiaries on his 401K. He later remarries. If he does not update his beneficiary form, who will receive the proceeds upon his death?
Permalink Submitted by Alan - IRA critic on Mon, 2023-12-11 18:29
If the new spouse did not sign a waiver and submit it to the plan administrator, the spouse will inherit the 401k, not his children. And if the plan is not aware of the remarriage and makes distributions to the children, his widow could sue the children for recovery. The best thing to do is to name the spouse or get the spouse to sign the waiver, and the children would then inherit to avoid a post death legal hassle and associated costs.