What Is A Beneficiary? What Is The Difference Between Primary And Contingent Beneficiary? What Is A Beneficiary? What Is The Difference Between Primary And Contingent Beneficiary?

What Is A Beneficiary? What Is The Difference Between Primary And Contingent Beneficiary?

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Beneficiaries inherit your account upon your death. There are two types of beneficiaries: Primary and Contingent. 

  • Primary beneficiaries are first in line to inherit your assets according to the percentages you assign to them
  • Contingent beneficiaries inherit the percentage of your assets assigned to them only if none of the primary beneficiaries survive you or disclaim your assets

*You may not name yourself as a beneficiary.

For more information, feel free to visit the IRS website.