When Congress first created IRAs, they planned for the possibility that an account owner may pass before the accumulated funds were withdrawn. That is one reason why account owners are required to designate beneficiaries-individuals who will inherit and/or distribute the assets of the IRA upon the death of the original owner.

The intent of specifying a beneficiary is to ensure that the money goes where the original IRA owner wanted it to go. (Keep in mind that beneficiaries cannot be named after the account owner dies.) Also, as your advisor will gladly explain, there are profound tax implications involved in naming beneficiaries. Selecting both primary and contingent beneficiaries for your IRA can grant you the flexibility to leave a tax-deferred financial legacy to your heirs.

And lastly, experience has shown us that computerized data is distressingly fragile; account custodians (banks, brokerage houses) may lose data when they move, downsize, or change operating systems. The longer you have held your account with a major financial institution, the greater the likelihood is that the custodian can no longer identify your beneficiaries, or even locate the original forms!

For these reasons, America's IRA Centers™ recommends an annual beneficiary review of all Roth and IRA accounts. Aaron Hersch, managing director of Denver's America's IRA Centers, will gladly provide this essential service for you.

America's IRA Centers™ is the nation's only locally-based financial services provider that specializes in IRAs and retirement distribution planning. Denver's America's IRA Centers™ is located at 7800 E Hampden Avenue, Suite 51, in the Tiffany Plaza shopping center, near the corner of East Hampden Avenue and Tamarac Drive. Call Aaron Hersch today at 303-779-4727 to arrange a review of your beneficiary designations.

About America's IRA Centers

America's IRA Centers TM offer specialized services in retirement distribution planning, Roth IRA conversions, rollovers from qualified plans, and the emerging arena of Multi-Generational IRAs. America's IRA Centers TM is community-based resources staffed by local professionals with years of experience in financial planning, safe money solutions, and those aspects of the federal code that impact retirement distributions. Learn more about America's IRA Centers TM, at www.americasiracenters.com or call 888-760-4945.