One of the most common questions we hear from 401(k) participants is: “I already have a beneficiary on file — isn’t that enough?”

The short answer is no — and here’s why it matters.

Having a beneficiary designation on your 401(k) is important, but it’s only one piece of a complete estate plan. Tax laws surrounding retirement accounts have changed significantly in 2019, 2022, and again in 2025, and each of those changes affects how your 401(k) will be taxed when it passes to your heirs.

One of the most common mistakes we see is naming a trust as the beneficiary of a 401(k) without making sure the trust language is structured correctly for retirement assets. If the trust doesn’t have the right provisions, your family could face a significant and unexpected tax bill at an already difficult time.

At Schowengerdt Law, we take care to ensure that not only does your estate plan reflect your wishes, but that all of your assets — including those with tax consequences like retirement accounts — work together as a cohesive plan.

If you live in Kansas or Missouri and want to make sure your 401(k) beneficiary designation is structured correctly, we’d love to help. Schedule a complimentary consultation at djslaw.us.