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.

  1. Beneficial Interest

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    Discretionary beneficiaries are those named in a trust or similar ...
  6. Absolute Beneficiary

    A designation of a beneficiary that can not be changed without ...
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