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How to Update Your Retirement Account Beneficiaries
By Jason Su ·
Your retirement account does not follow your will. It follows the beneficiary form attached to the account. If that form is out of date, the money can go to the wrong person — an ex-spouse, a person you no longer want named, or the estate. Updating it takes minutes, and it is the single most important piece of maintenance on any retirement account.
Here is the full sequence, account by account.
Why the form beats the will
A retirement account is one of the few things that overrides a will by design. The account’s own record says where the money goes, and that instruction wins. If you named someone years ago and never changed it, the account goes to them, whatever your will says today.
For how that plays out in full, see what happens to a 401(k) or IRA when someone dies.
What to name, and what not to
Before you log in, decide who is primary and who is the backup, or contingent, beneficiary. The primary gets the account. The contingent gets it only if the primary has already passed.
A few things to avoid:
- Naming the estate pulls the account into the court process and can cost time and money.
- Naming a minor child works, but a minor cannot take the money directly. It may sit until a guardian or a trust steps in.
- Naming “my children” without full legal names can slow the claim down later.
How to find the beneficiary page
Every provider puts the beneficiary section somewhere in account settings, but the label differs. Look for “beneficiaries,” “designations,” or “inheritance.” On a workplace 401(k), the recordkeeper’s portal is often separate from the employer’s payroll site.
If you cannot find it, call the provider. This is a routine question, and the answer takes under two minutes.
How to make the change
The steps are the same almost everywhere:
- Log into the account and open the beneficiary section.
- Enter the primary and contingent beneficiaries, with their legal names and dates of birth.
- Review the percentages. They should add to 100 for each level.
- Save, and keep the confirmation.
On a 401(k), changing a spouse beneficiary is the one exception. Federal law generally requires your spouse’s written consent to name someone else. The provider sends the waiver form when you ask for it.
When to update
Once a year is the baseline, and any major life event is a trigger: a marriage, a divorce, a birth, a passing, or a change in who you want to look after things.
Tie it to something you already do. The annual review checklist and the beneficiary review worksheet turn this into a routine instead of a resolution you keep forgetting.
Frequently asked
Does changing my will change my 401(k) beneficiary?
No. The beneficiary form on the account decides, not the will. You have to change the form itself.
What if I am divorced and my ex is still named?
The account will go to the ex unless you change the form. Divorce does not automatically rewrite a beneficiary designation in most cases. This is the most common version of the mistake.
Do I need my spouse’s permission to change the beneficiary?
On a 401(k), usually yes. Federal law generally requires your spouse to sign a written waiver before you can name someone else. An IRA has no such requirement.
Can I name a trust as beneficiary?
You can, and it is one way to control money that goes to a minor child or to someone who needs protection. But it comes with its own tax rules, so it belongs in a conversation with a professional, not a quick online click.
Next step
Log into your oldest retirement account today and read the beneficiary line out loud. Fix anything that names an ex, names nobody, or names a person who is no longer the right choice.
Then record what you found in the Retirement Account Inventory, so the family does not have to repeat the search.
General information only. Rules vary by state and change over time. Confirm details with the official source before acting. Read the full disclaimer.