401(k) beneficiaries

What are the pros & cons of naming a living trust as primary beneficiary of your 401(k) account?



  • The advantage is that it makes it easier to draft the beneficiary designation form.  
  • The disadvantages are that it necessitates creating a living trust (which makes sense in some cases and in some states but not for most people in most states), and that naming a living trust as beneficiary of retirement benefits increases the likelihood that something will go wrong.


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