Ask a Fool: How Do My Retirement Account Beneficiaries Work?
Nobody likes thinking of their own mortality, but it's a necessary part of smart estate planning. This is especially true when it comes to retirement accounts because they're likely to hold a substantial portion of your wealth in your latter years.
When you're choosing your retirement plan beneficiaries, there are a few things you should know. First, your primary beneficiaries are the people who would get the money in your account if you were to die if they are alive at the time. Contingent beneficiaries are who would get the money if your primary beneficiaries die before you do.
If you're married, it's worth noting that your spouse would legally inherit your retirement account even if you left the beneficiaries blank. In fact, if you want to name anyone other than your spouse as your primary beneficiary, your spouse needs to sign a written waiver.
Source Fool.com
