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2020 is coming to a close. Have you evaluated your year-end retirement checklist? It’s a good idea to schedule some extra time to take a closer look at your personal information listed for your retirement accounts, make updates to beneficiary information and review the contribution limits for your accounts. Start the new year with your retirement in check. Below are a few helpful items you should consider adding to your year-end retirement checklist.
Update Personal Information
It’s important to update personal information on file with your custodian on a regular basis. If you’ve recently moved, be sure to contact your custodian and update the address on file for your account. This way, your custodian can generate tax forms and properly deliver your account information to you with ease. Be sure to also update your phone and email information with your custodian if you have new contact information. Our clients can easily update these items by completing the Information Update Request form.
Review Beneficiary Information
Making a point to update beneficiary information on file is extremely important. According to research from Ascensus, over one-third of all IRA death claims processed by Ascensus are submitted for processing without a beneficiary being identified, either on the IRA document itself, or on a separate beneficiary form. As a result, the overall processing times are increased and the payment of the IRA assets to the IRA owner’s family is delayed.
Our Kingdom Trust clients have the ability to submit a Beneficiary Designation and Change Request form via email to update their beneficiary information on file. Clients can include their beneficiary designation information on the account application prior to the account being opened. All of our forms are located on the Kingdom Trust website under the Forms & Fees section.
Max out 401(k) and IRA Contributions
There are annual limits to how much individuals can contribute, and certain contributions may be tax-deductible, depending on the account owner’s income and employment situation. Be sure to review the 2020 IRA contribution and deduction limits to ensure that you are taking full advantage to save for retirement. And if you’re unable to contribute up to the limit by year’s end, never fear! The deadline to make contributions to an IRA is actually Tax Day of the following year. Consult your tax professional or financial advisor to determine how much you should contribute to your retirement accounts.