Designated Beneficiary

DEFINITION of 'Designated Beneficiary'

The person who determines how long the retirement plan will survive as a tax-deferred vehicle under the laws governing certain retirement plans. The designated beneficiary must be a person, or in certain situations, a trust for designated individuals.

BREAKING DOWN 'Designated Beneficiary'

Since 2002, the laws governing the distribution of qualified retirement plan assets have become extremely complex. A designated beneficiary must be a person, not an estate and not a charity, although there are also other less tax-efficient ways of making distributions to entities.

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RELATED FAQS
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    It depends. If the retirement plan is a qualified plan, then the plan administrator would refer to the plan document to determine ... Read Answer >>
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