What are qualified accounts and what does this mean for my estate planning?

Qualified accounts are retirement-type investment accounts that receive preferential income tax treatment. Income taxes on qualified accounts are generally tax deferred, which results in taxes that are not paid until funds are withdrawn from the account (however, Roth accounts are an exception because Roth withdrawals are generally not taxed upon distribution).

When considering how to handle the different types of qualified accounts from an estate planning perspective, you have to consider both the tax consequences and the hassle-factor associated with the account.

1. Failing to name contingent beneficiaries Life’s uncertain. We’d like to believe everything will go as planned, but it’s possible that your primary beneficiaries may predecease you. If that happens, you should always have alternate or back-up beneficiaries in place. Also, it’s best to make a habit of reviewing the beneficiaries on your