28 Aug How can my kids share my 401(k) plan when I die?

Q. I have 401(k) at my former employer and have two children that I want to inherit the balance when I pass on. Can I name both as beneficiaries? if not, how can they split the account?
— Planning

A. You can certainly name both of your children as beneficiaries of your 401(k).

Most beneficiary forms require you to name each beneficiary as well as the percentage to each, said Yale Hauptman, an estate planning attorney with Hauptman and Hauptman in Livingston.

“If you wish them to split it equally you would enter 50% next to each one,” he said. “Whatever percentages you choose should add up to 100%.”

When you pass away, each child would claim his/her share and roll it over to an IRA in his/her own name, Hauptman said.

Accounts like these are passed on based on beneficiary designations rather than what it says in your will.

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This story was originally published on Aug. 28, 2020.

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