Importance of Updating Beneficiary Designations

Often when we think of IRA’s, we also think of security and financial stability during our retirement years. However, as people put more money aside for retirement, we see that members do not always use all of their IRA money before death.

When members die, their beneficiary designations become very important. These designations direct who will receive the death benefits. It is imperative that IRA owners keep their beneficiary designation forms updated to insure that the IRA funds are paid out in a timely manner following their deaths.

It is your responsibility as a member to keep the beneficiary designations current. However, with the busy lives we lead, this is not always at the top of our "to do" list. Therefore, it is good member service to remind our IRA Owners how important it is to update their IRA beneficiary designation forms.

In addition, another reminder is to change your beneficiary form upon CHANGE IN MARITAL STATUS. Failure to change your beneficiary form upon marriage or divorce could result in a former spouse being listed as beneficiary. And upon the death of you, the IRA owner, this could lead to the designation of benefits being contested in court, which could have been avoided with a change in beneficiary.

If you have any questions or need to make changes in beneficiaries, please contact one of our Member Service Representatives at (225) 389-3059.