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Self-directed 401k FAQ – Can I list my Estate/Living Trust as the beneficiary of my Solo 401k?
QUESTION:
When choosing a beneficiary of my Solo 401k, can I list my Estate Plan Trust to be the beneficiary of my Solo 401k?
RESPONSE:
It is certainly acceptable to list a living estate trust as the beneficiary of one’s Solo 401k.
The Solo 401k owner/participant would need to work with their estate planning advisor to (i) first determine that the living trust can serve as the beneficiary of the solo 401(k) and then (ii) work with the estate planning advisor to determine exactly how to list the living trust as the beneficiary on the beneficiary election form.
Please note that we provide the beneficiary election form as part of the solo 401(k) plan establishment documents provided when one opens a Solo 401k. The beneficiary election form is the form that is used to designate who or what is the beneficiary of the solo 401(k) when the Solo 401k owner/participant passes away.
