5 Biggest 401(k) Mistakes to Avoid

2. Failing to Update Beneficiary Designations

Another major mistake individuals make with their 401(k)s is failing to update beneficiary designations over time. This is because, in the case of your death, the remaining balance of your 401(k) will be passed on to the beneficiary whose name is on the beneficiary designation form. For instance, your 401(k) balance may end up with your former spouse if you’ve failed to update your beneficiary designation form and their name is on it.