IRA Beneficiary
4. Save For Your Retirement, But...
The intent of these plans was to encourage you to save for your retirement.
But you may not need all this money for your retirement if you have other sources of income. In fact, you may not need it at all. And, of course, you may die prematurely, with money still in your tax-deferred account.
So, you need to name a beneficiary-someone who will receive this money (if there is any left) after you die.
Now, you may be thinking: "I probably won't need all this money for my retirement. So I'll just leave it in my tax-deferred account and let it keep growing."
Unfortunately, it doesn't work that way. At a certain point, Uncle Sam says you must start taking your money out.