Terry Savage
When I asked about the simple mistakes people make, Slott's answer reminded me of those annual reminders to "sign your tax form." The most important thing is to make sure you've actually signed a beneficiary form for each retirement account. Next, you need to make a copy of the form you signed with your bank or broker, and leave it with your documents so the account is not overlooked at your death.
It's the little things that count, and during our conversation Slott continually reminds me that by the time someone figures out you've made a mistake -- after your death -- it will be too late to do things the correct way! Step 1. Getting Organized People will likely work for several different companies in a lifetime, and may also set up individual retirement accounts, and different types of IRAs, including after-tax, pretax and Roth. Slott says the first step is creating an inventory of where everything is -- and writing it down! This is about more than just account numbers and valuations. Each plan custodian has a different set of rules, within IRS and legal constraints. Understanding the withdrawal rules, borrowing rules from company plans and ongoing costs may encourage you to consolidate where appropriate, making life simpler for future withdrawals and for your heirs.
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