Transfer on Death (TOD) / Payable on Death (POD)
A registration that passes an account to named beneficiaries outside probate.
What is Transfer on Death (TOD) / Payable on Death (POD)?
TOD applies to securities accounts, POD to bank accounts. The owner keeps full control while alive and can change beneficiaries at will; beneficiaries have no rights until the owner dies. At death the assets transfer directly, avoiding probate.
Transfer on Death (TOD) / Payable on Death (POD): a worked example
A single parent registers a brokerage account TOD to their two children.
More terms in Retirement Plans, Accounts & Trading
IRA Rollovers vs. Transfers
60-day rollovers are limited to one a year; direct transfers are unlimited.
10% Early Withdrawal Penalty & Exceptions
Distributions before 59 1/2 cost 10% extra, unless an exception applies.
Solo 401(k)
A 401(k) for a self-employed owner with no employees other than a spouse.
Defined Benefit Plan
A pension promising a specific benefit; the employer bears the investment risk.
Defined Contribution Plan
An individual account plan whose payout depends on contributions and returns.
403(b) Plan
A salary-deferral plan for public schools and 501(c)(3) nonprofits.
457 Plan
Deferred compensation for state and local government employees.
SIMPLE IRA
A low-cost plan for employers with 100 or fewer employees.
All Retirement Plans, Accounts & Trading terms · Full glossary