The $3 Million ERISA Trap: Are You Making This Retirement Mistake?

2025-09-11

💼 Want expert help in planning for your financial future? Apply for a consultation here 👉 https://calendly.com/erg-kc/introductory-phone-call-with-erg Most people assume their beneficiary form tells the whole story when it comes to retirement accounts. But for 401(k)s and other ERISA-governed plans, one little known rule can completely override your wishes, and in one case, it shifted $3 million away from the intended heirs. This story is a powerful reminder that overlooking the fine print can cost your family dearly...

💼 Want expert help in planning for your financial future?

Apply for a consultation here 👉 https://calendly.com/erg-kc/introductory-phone-call-with-erg

Most people assume their beneficiary form tells the whole story when it comes to retirement accounts. But for 401(k)s and other ERISA-governed plans, one little known rule can completely override your wishes, and in one case, it shifted $3 million away from the intended heirs. This story is a powerful reminder that overlooking the fine print can cost your family dearly.

Here’s what we cover in this episode:

⚖️ The Martinez case as a cautionary tale

💔 Remarriage without updates can redirect 401(k)

🚨 Common assumption: “Beneficiary forms trump everything” isn’t always true

🔄 Life changes are a good time for a beneficiary review

🛡️ Difference between IRAs and ERISA plans

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