QUESTION: I want to specify my family trust as the primary and only beneficiary of the solo 401k tust. My wife is the primary beneficiary of our family trust. Does she need to sign and acknowledge that she is not the listed as the primary beneficiary of the 401k trust?
ANSWER: Good question. The 401k regulations by default deem the spouse as the primary beneficiary. Therefore, yes she must sign and acknowledge that she is not the primary beneficiary if the family trust is named as the primary beneficiary, even if she is the trustee of the family trust. If this is not done, she will automatically be deemed the primary beneficiary regardless of who you name as the primary beneficiary.
