A new study completed by the Aspen Institute has found that up to 60% of American workers don’t have a retirement account at all. Due to working in the gig economy or the lack of comprehensive retirement plan options presented by traditional employers, many people choose not to have a retirement account, or may never invest in one because they don’t realize the importance. Investing in a 401(k) plan is typically only an option for those who work with a traditional employer.
When an employer sponsored plan is not available, an individual can still open an IRA with a financial institution or brokerage firm and max out the contributions, if at all possible. Those individuals who have already selected a retirement plan should realize that the estate planning for this is done outside of the last will and testament process.
Listing an IRA inside of a last will means that any beneficiary designation forms filed directly with the retirement account plan manager will override anything listed in the estate plan. To discuss the importance of working through these issues and helping to guard against the retirement plan savings you’ve already set aside, schedule a consultation with an experienced estate planning lawyer in Pasadena today.