While it is possible for a person to name his or her stepchildren as beneficiaries under a number beneficiary designation forms, there are certain rules that apply to the forms that a person might want to take into consideration. For example, under 401(k)s and other such employer plans, a person would need to obtain his or her spouses consent before naming his or her stepchild as the primary beneficiary. The rule applies to all of a person’s children. In contrast to a 401(k), a person does not need to get his or her spouses consent if naming a stepchild to be the beneficiary of an IRA. In both cases, a person might want to directly name his or her stepchildren instead providing an board term like “children.”
See Joe Cichinelli & Jared Trexler, Leaving Retirement Money to Stepchildren, The Slott Report, Aug. 21, 2012.
Special thanks to Brian J. Cohan for bringing this article to my attention.
