This allows you to control who receives the value of your retirement account should you die.

The number of beneficiaries you name, and whether you make them primary or contingent beneficiaries, is up to you.

A primary beneficiary will inherit your IRA assets unless he/she pre-deceases you. A contingent beneficiary will inherit your IRA assets only if your primary beneficiary(ies) has died before your IRA assets have been distributed.

You can allocate a percentage of the assets to each beneficiary. For example, if there were two primary beneficiaries, you could allocate 50% of your assets to each, or 75% to one and 25% to the other, or some other combination thereof. The same applies for contingent beneficiaries. It’s important, though, that the totals add up to 100%, so that all assets are accounted for. If the totals do not add up to 100%, your assets will be allocated evenly among the named beneficiaries.

The percentage share of any remaining beneficiary(ies) will be increased on a pro-rata basis unless you complete a new Beneficiary Designation form, reallocating your assets.