IRA New Year's Resolutions for a Financially Secure Future

As the new year unfolds, it's the perfect time to revisit our financial goals and commitments. A crucial aspect of financial planning involves managing your Individual Retirement Accounts (IRA) effectively. Below are some resolutions you can adopt to ensure your IRAs are in order:

1. Obtain and Secure Beneficiary Forms

Make it a priority to obtain a copy of the IRA beneficiary form for each IRA you own. It is essential to have named a primary beneficiary and a secondary (contingent) beneficiary for each account. If there are multiple beneficiaries, ensure that each one's share is clearly defined with a fraction, percentage, or the term "equally," if applicable.

2. Verify Beneficiary Records with Financial Institutions

Verify that your beneficiary selections are on file with the respective financial institutions, and ensure their records align with your intentions. This will prevent any accidental discrepancies that could affect the distribution of your assets.

3. Keep Beneficiary Forms Accessible

Maintain a copy of all your IRA beneficiary forms and provide your financial advisor and attorney with copies. Letting your beneficiaries know where they can locate these forms is crucial as well.

4. Annual Review

Commit to reviewing your IRA beneficiary forms at least once a year to confirm their accuracy. Changes may be necessary due to updates in tax laws or significant life events, such as births, deaths, adoptions, marriages, re-marriages, or divorces.

5. Confirm Provisions with Financial Institutions

Evaluate the IRA custodial documents for every financial institution holding your IRA funds. Verify that these institutions allow the provisions essential to you and your beneficiaries.

6. Extend Resolutions to Company Retirement Plans

Apply the above resolutions to any company retirement plan accounts you may have, such as 401(k)s, 403(b)s, or 457 plans. Comprehensive management across all retirement accounts will further secure your financial future.

By following these resolutions, you can start the new year with confidence, knowing that your retirement plans are well-organized and tailored to your needs. Taking these proactive steps today will contribute to a financially secure tomorrow.