Sometimes we worry that the worst might happen, about what would happen to our partner if they survive us. We all know it’s possible, but unfortunately few of us prepare for it as well as we could.
The good news is that you can name your spouse as the beneficiary of your individual retirement account.
The Benefits to Your Spouse
According to Jim Blankenship, CFP®, EA, not only does your surviving spouse get the most tax breaks of almost any possible beneficiaries, but they can defer distributions to the year in which you would have reached age 70½ without taking any action. This gives them the flexibility to choose what is best for them and ensures that the distributions will actually stretch out over their entire life – so their security and comfort is guaranteed.