Beneficiary - 401k Retirement Glossary

401k Participants have seen growth rates of 50% over the past 7 years. Long Term Contributors saw their savings grow from $67,785 in 1999 to $102,014 in the year 2005.
Fact: Employee Benefit Research Institute and the Investment Company Institute (EBRI).

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Beneficiary - 401k Retirement Glossary

A beneficiary is a person who will inherit the annuity payments or the wealth of a dead person based on his will or financial covenant. Other items that can be distributed to a beneficiary include property, bank account balances, 401k savings and more.

This beneficiary can be a:

- spouse of the dead
- child of the dead
- charitable organization
- friend, etc

The person who is giving out his wealth is known as the benefactor.

Examples of Beneficiaries

Beneficiary of a Life Insurance Policy = Person who receives the annuity payments from the dead person's will after his death

-Beneficiary of a Trust = Person with equitable ownership of the trust's assets (also known as the trustee).