Not Updating Your Beneficiary Designations
We all have to do it at some point: think about what will happen to our assets once we die. Some people want to get it done once and then forget about it, but by doing so with your 401(k) plan you could end up leaving money behind to someone you no longer want.
For example, if you named a former spouse as your beneficiary, your 401(k) will go to them, trumping whatever you’ve written in your will.
Important life changes should make you review all your beneficiaries before it’s too late. Otherwise, the important people in your life with whom you’d live you leave your assets after you die may end up not receiving anything.