If a 401k participant fails to make a beneficiary election, the plan document more than likely will determine who the beneficiary is. Most documents will stipulate that in the absence of an election, the benefit will go to the spouse, then child, then parent, etc. This may not be how the participant wishes for the benefit to be left. Also, what about former spouses, step-children, foster children, or step-parents? Without clear elections from the participant, the state may end up determining who receives what benefit.

For more guidance on beneficiary elections or to see if you have any beneficiary info on file, feel free to reach out to us!