Does a 401(k) Really Transfer to Spouse After Death? – Avoid This Mistake + FAQs

Yes – in most cases a 401(k) transfers to the spouse after the participant’s death.

Federal law gives spouses special rights to 401(k) funds: if a married person dies and has a 401(k), the surviving spouse is typically the default beneficiary by law.

Even if the 401(k) owner named someone else on the beneficiary form, the spouse is often entitled to at least half of the account (50%) unless they formally waived their right in writing. In practice, this means that when a married 401(k) holder passes away, their account usually becomes the spouse’s asset – which the spouse can roll into their own IRA tax-free or continue as an inherited 401(k).

Exceptions arise only if the spouse signed a notarized waiver consenting to another beneficiary, or if plan-specific rules differ, but those cases are rare.

Bottom line: If you’re married, expect your 401(k) to go to your spouse when you die, thanks to strong spousal protection laws under ERISA (the federal pension law).

Key Things to Avoid When Planning 401(k) Inheritance

Planning your 401(k) inheritance can ensure smooth transfers and avoid family disputes.

🚫 Don’t Rely on Your Will: Avoid assuming your will overrides your 401(k) beneficiary form – it doesn’t. The 401(k) beneficiary designation trumps your will, so if you want your spouse (or anyone else) to get the funds, keep that beneficiary form updated, especially after life changes like divorce or remarriage.

🚫 No Outdated Forms: Don’t leave ex-spouses or deceased relatives on your beneficiary form. Courts have handed 401(k) assets to ex-wives or ex-husbands simply because their names remained on the form, even if divorce decrees said otherwise.

🚫 Don’t Ignore Spousal Rights: If you remarry and intend for kids from a prior marriage to inherit, don’t assume naming them is enough – without a spousal waiver, your new spouse can still claim at least 50% of the 401(k).

🚫 Avoid Probate Pitfalls: Lastly, never leave the beneficiary slot blank. If no beneficiary is named, many plans default to the spouse, but some might push assets into your estate, triggering probate – a time-consuming legal process. So, to avoid unwanted outcomes, keep your beneficiary designations current, get spousal consents when needed, and double-check plan rules regularly.

Important Terms Explained (Simple Definitions)

Understanding 401(k) inheritance means grasping a few key terms. Here are plain-English definitions for the main concepts:

• 401(k) Beneficiary: The person(s) you officially name to inherit your 401(k) when you die. They override instructions in a will. For married folks, the spouse is the automatic primary beneficiary unless they agree otherwise.
• Spousal Waiver: A legal document a spouse signs (often notarized) to give up their automatic rights to the 401(k) assets. If a spouse signs this, the account owner can name someone else as beneficiary (like a child or friend) without violating spousal rights.
• ERISA: The Employee Retirement Income Security Act, a federal law that, among other things, sets rules for retirement plans and spousal rights. ERISA says a 401(k) spouse gets at least half the account unless there’s a waiver – it’s why federal law often overrides state laws for 401(k)s.
• Inherited 401(k): When a spouse inherits a 401(k), it can become an “inherited 401(k)” or be rolled over to an IRA. Inherited accounts keep the tax benefits of a 401(k) but must follow special withdrawal rules.
• Rollover IRA: A tax-free transfer of funds from a 401(k) to an IRA in the spouse’s name. Surviving spouses can do this to combine the inherited money with their own retirement funds, avoiding immediate taxes and continuing growth.
• Probate: The court process to distribute someone’s assets after death. 401(k) funds usually avoid probate by going directly to the beneficiary (often the spouse). But if no beneficiary is named or the estate is named as beneficiary, the account might go through probate, causing delays.
• Required Minimum Distribution (RMD): The minimum amount that must be withdrawn yearly from retirement accounts after reaching a certain age (now 73). A spouse who inherits a 401(k) can usually delay RMDs by rolling into their own IRA or start RMDs based on their own age or the deceased’s schedule, whichever favors them.

Detailed Examples: How 401(k) Spousal Transfer Works

Let’s break down some realistic scenarios to see how a 401(k) transfers to a spouse after death:

1. Standard Case – Spouse Sole Beneficiary: John is married to Alice and has a 401(k) at work. He names Alice as the 100% beneficiary on the plan’s form. John tragically passes away. Because Alice was the named beneficiary (and also the default by law due to marriage), the 401(k) plan directly contacts Alice. She provides John’s death certificate and ID, and the plan gives her options: keep it as an inherited 401(k) (if the plan allows), or do a spousal rollover into an IRA in her name. Alice chooses a rollover, moving the funds to her IRA tax-free within 60 days. Now, Alice can invest those funds as her own and doesn’t need to take any distributions until she herself retires or reaches RMD age, preserving the nest egg John left her.

2. No Named Beneficiary – Spouse Still Gets It: Maria has a 401(k) but never filled out the beneficiary form. She’s married to Carlos. When Maria dies unexpectedly, the 401(k) plan looks at its rules. By federal default, Carlos is the beneficiary since Maria was married. The plan may require Carlos to prove he’s the spouse (marriage certificate) and Maria’s death certificate. Once verified, the account transfers to Carlos. Some plans might automatically create an inherited 401(k) account for Carlos or give him a check. Carlos can then decide to roll it to an IRA in his name, avoiding immediate tax, or leave it (if the plan permits inherited accounts). Either way, because Maria died without naming someone, Carlos still inherits by law – though a short probate-like process might occur if plan documents require it. Importantly, since he’s the spouse, he gets the money outright rather than it going into Maria’s estate.

3. Conflict Scenario – Outdated Beneficiary vs. New Spouse: David was married to Emma and named her as 401(k) beneficiary. They divorce; the divorce agreement says Emma gives up rights to the 401(k). David forgets to update the form and later marries Fiona. When David dies, his old form still lists Emma (ex-wife) as beneficiary. Who gets the money? Shockingly, Emma – the ex-spouse – likely inherits the 401(k) because ERISA (federal law) says “pay the named beneficiary” no matter what a divorce decree says. Courts have ruled in favor of the person on the form, even if it’s an ex-spouse, unless a plan had a specific rule negating an ex after divorce. Fiona, the new wife, could claim under ERISA that she was entitled to 50% as a spouse – but since no waiver was signed and Emma is on the form, some plans would give Emma 50% and Fiona 50% (due to spousal right to half). Other plans might give Emma 100%. This messy example shows why updating beneficiary forms is crucial and how spousal rights create complex outcomes if paperwork isn’t in sync with life changes.

4. Spousal Waiver in Action – Naming a Child: Linda is married to Mark. She has a 401(k) and wants to leave it entirely to her son from a prior marriage. Under 401(k) rules, Mark (the spouse) is default beneficiary. Linda can fulfill her wishes only if Mark signs a spousal waiver giving up his right. Linda obtains the plan’s waiver form, Mark signs it in front of a notary, and Linda submits it. She then names her son as the sole beneficiary on the 401(k). When Linda passes, the plan sees Mark’s waiver and Linda’s beneficiary designation. The son inherits 100% of the 401(k), because Mark legally agreed to forego his spousal share. Without that waiver, Mark could have claimed half or all of it, regardless of Linda’s wishes or even a mention in her will. This example shows how proper paperwork allows exceptions to the automatic spousal transfer.

5. Inherited 401(k) Rollover Strategy – Tax Efficiency: Alex leaves a $500,000 401(k) to his wife, Beth. Beth wants to minimize taxes and ensure long-term growth. Instead of withdrawing cash (which would trigger income tax on the full $500k), she opts for a direct rollover. The 401(k) plan cuts a check payable to “Beth’s IRA” (not to Beth personally), so it’s a trustee-to-trustee transfer, avoiding withholding. Beth deposits it into her IRA without taxes. Now, she treats it as her own retirement money. Because she’s 60 and Alex was 65, her own IRA distribution rules apply – she can wait until she’s 73 to start RMDs, giving the money more time to grow tax-deferred. Had she left it as an inherited 401(k) without rolling over, she might have had to start RMDs based on Alex’s age or plan rules right away. This demonstrates how spouses have a unique advantage: they can take inherited 401(k) funds and make them their own, getting maximum flexibility and tax deferral.

Evidence & Legal Precedents: What the Courts Say

The rules governing spousal inheritance of 401(k)s aren’t just theoretical – courts have reinforced them. Here are a few important legal precedents that highlight how these transfers work:

• Egelhoff v. Egelhoff (2001): This Supreme Court case underscored that 401(k) beneficiary forms override state divorce laws. In Egelhoff, a man’s 401(k) still named his ex-wife as beneficiary. After he died, the state law said divorced spouses lose beneficiary rights, but the Court ruled that federal law (ERISA) preempts state law. The ex-wife kept the money since her name was still on the form. Lesson: The named beneficiary gets the 401(k), even if state law or a divorce decree says they shouldn’t, because of ERISA’s dominance.

• Kennedy v. Plan Administrator for DuPont (2009): Another Supreme Court decision where a divorced wife remained the listed 401(k) beneficiary but had waived her rights in a divorce settlement. The Court unanimously decided the plan must pay the named beneficiary (the ex-wife) and not the daughter, despite the waiver in divorce papers. It emphasized that 401(k) plan administrators must follow the plan documents (beneficiary form) to the letter. Lesson: Always update your forms. The spouse or ex-spouse on the plan’s document will get the money, and courts will enforce that to keep plan administration simple and uniform.

• Boggs v. Boggs (1997): This Supreme Court case dealt with community property vs. ERISA. A man in Louisiana (a community property state) left his pension to his second wife, but children from the first marriage argued part of it was their late mother’s community property. The Court ruled that ERISA preempted state community property laws; the second wife (the current spouse) was entitled to the pension benefits, preventing the children from claiming a share. Lesson: For 401(k)s and similar plans, federal spousal protections beat state marital property rules – the surviving spouse’s rights can’t be diluted by state law claims.

• Hillman v. Maretta (2013): Not a 401(k) but a life insurance case for federal employees that echoes the same theme: the Supreme Court gave the insurance to an ex-wife still named as beneficiary, despite a state law meant to give it to the current spouse. It’s a different law (FEGLIA, not ERISA), but reinforces how beneficiary designations are powerful and must be changed when life changes.

Beyond Supreme Court cases, many appeals courts have handled fights over 401(k) beneficiaries.

A notable one (8th Circuit, Treas. Reg. example cited in estate planning circles) involved a woman whose 401(k) still listed her ex-husband; the plan paid him after her death, because her post-divorce attempt to change the form was invalid (she had fractional percentages that got rejected).

The court found the employer not at fault for not removing the ex because the form wasn’t properly filled.

Lesson: Even a technical mistake (like not using whole percentages on a beneficiary form) can leave an ex-spouse as the heir. Always confirm your beneficiary changes are accepted and in force.

These cases all drive home a consistent message: ERISA’s rules and the plan documents govern 401(k) inheritance strictly. The surviving spouse has strong rights, but those rights are executed through proper paperwork.

Courts will side with the plan’s written records (beneficiary forms, waivers) almost every time. So, to ensure your intention (whether it’s caring for your spouse or someone else) is carried out, you must follow the legal formalities.

Beneficiary rules under ERISA are meant to provide certainty – and they do, but that means any oversight can produce unwanted outcomes enforced by law.

Comparisons: 401(k) Spousal Inheritance vs. Other Methods

How does inheriting a 401(k) for a spouse compare with other ways assets transfer at death? Let’s compare spousal 401(k) inheritance with other inheritance methods to see the differences and similarities:

• 401(k) vs. Traditional Will Bequests: If you leave money to your spouse in a will (say, a bank account or house), that asset goes through probate unless it’s jointly owned. Probate can take months, and there might be legal fees. In contrast, 401(k) assets pass directly to the spouse beneficiary outside probate, typically within weeks of filing a claim with the plan. Also, a will is public in probate, but a 401(k) transfer is private. On the downside, the 401(k) for a spouse will eventually face income taxes when withdrawn, whereas some inherited assets (like a home) get a step-up in tax basis and can be sold tax-free. So, 401(k) gives speed and spousal certainty but may carry a tax bill later, whereas will transfers are slower but sometimes more tax-favored for certain assets (like stocks with stepped-up basis, or Roth IRAs passed by will).

• 401(k) vs. IRA Inheritance: An IRA left to a spouse is similar to a 401(k) in that the spouse isn’t automatically entitled by law (IRAs follow the beneficiary form too, but no federal spousal guarantee unless in a community property state and opened during marriage). However, practically, most married people list their spouse for IRAs as well. A key difference: with an inherited IRA, a spouse can either become the account owner (treat it as their own) or remain a beneficiary. With a 401(k), a spouse often rolls it to an IRA anyway, because some 401(k)s require faster withdrawals for inherited accounts. IRAs also avoid probate via beneficiary forms, like 401(k)s. But one big difference: if you want to name someone other than your spouse on an IRA, in most states you can do that without spousal consent. In a 401(k), you generally must get spouse’s written consent to skip them. So 401(k)s offer more spousal protection by default, whereas IRAs offer more owner flexibility but fewer built-in spousal rights.

• 401(k) vs. Life Insurance: Life insurance policies also pass by beneficiary designation, not by will, and they pay out tax-free to the beneficiary in most cases (no income tax on life insurance death benefit). 401(k) money, however, is usually pre-tax savings, so the spouse who inherits must pay income tax on withdrawals. For example, a $500k life insurance payout to a spouse is $500k in hand, tax-free. A $500k 401(k) to a spouse is $500k in a tax-deferred account – if the spouse withdraws it all at once, it’s taxable as income (which might net maybe ~$350k after taxes, depending on brackets). However, 401(k) inheritance lets the spouse roll it to an IRA and spread withdrawals (and taxes) over their lifetime, which softens the blow. Also, life insurance doesn’t have spousal consent rules – you can name anyone and change it anytime. 401(k)s do have spousal consent requirements in many cases. So, life insurance offers tax-free, quick payout with no spousal constraints (but people often name spouses anyway), whereas 401(k) offers tax-deferred growth to the spouse but taxable distribution.

• 401(k) vs. Joint Tenancy Assets: If you hold, say, a joint bank account or joint tenancy real estate with your spouse, then on death it automatically goes to the surviving joint owner (often the spouse) outside probate, by operation of law. This is similar in speed to a 401(k) beneficiary transfer. However, joint tenancy gives both owners equal rights during life – not always desirable if one spouse wants to control their own asset. A 401(k) can’t be joint during life; it’s individual. But after death, the spouse’s right kicks in. Tax-wise, inheriting a jointly owned asset like a house can give a partial step-up in basis, which can be advantageous, whereas inheriting a 401(k) doesn’t give a basis step-up, since it’s pretax money. Joint assets are simple for couples to ensure the survivor gets it, but you must hold them jointly ahead of time. 401(k) is individually held with a beneficiary, but thanks to law, it acts similarly at death with the spouse’s nearly automatic transfer.

• 401(k) vs. Trust Inheritance: Some people name a trust as beneficiary of a 401(k) to control how the money is used (maybe if the spouse is incapacitated or to manage for kids). If a trust is named, the 401(k) still avoids probate by paying to the trust, but then the trust terms dictate use. However, naming a spouse directly is usually more tax-friendly – a spouse can roll to an IRA; a trust cannot (unless very specially designed as a “look-through” trust). Trusts might have to withdraw the 401(k) money within 10 years (per the SECURE Act rules for non-spouse beneficiaries) and then manage it for the spouse. This could cause faster taxation. So, direct spousal inheritance is simpler and defers taxes more, but trusts offer control. Couples often combine approaches: leave most to spouse directly, but some to a trust for specific purposes.

401(k) spousal inheritance stands out for strong legal protections (spouse is first in line by law), speed and probate avoidance, and the spouse’s ability to continue tax-deferred growth by rolling it over.

Compared to other methods, it is most similar to other beneficiary-designation assets like life insurance or IRAs in bypassing probate, but with the twist of mandatory spousal priority.

Compared to wills or joint property, it’s either safer (for spouse’s rights) or similar in outcome. The main drawback of a 401(k) inheritance is taxes on distributions, which things like life insurance or stepped-up assets avoid – but those often involve other trade-offs like insurance costs or needing joint ownership.

Federal Law vs. State Nuances: How Location Affects 401(k) Inheritance

When it comes to 401(k) spousal rights, federal law (ERISA) is the main authority. However, some state-specific nuances can creep in, especially in areas outside ERISA’s reach or for non-ERISA plans:

• ERISA – The Federal Shield: ERISA covers most employer 401(k) plans. It overrides state laws on retirement plan inheritance. This means whether you’re in California, New York, Texas, or Florida, the federal rules about spousal rights and beneficiary forms apply to your 401(k). States can’t force a 401(k) to pay someone different based on community property or other local statutes because of ERISA’s preemption. So, for a standard private sector 401(k), the surviving spouse is protected by federal law uniformly. The spouse must be the default beneficiary, and naming someone else requires their consent, regardless of state.

• Community Property States Exception: In community property states (like California, Texas, Arizona, etc.), spouses have a right to half the “community” assets. If you buy a house during marriage, each spouse owns half by default in those states. But with 401(k)s, ERISA trumps this for distributions. A spouse might claim that half the 401(k) contributions were community property (earned during marriage) in a divorce or estate situation, but as the Boggs case showed, ERISA’s rules still give the surviving spouse the edge in death. However, note: community property states do affect IRAs sometimes. If a married person in such a state names a non-spouse beneficiary for an IRA, the spouse might have to sign off due to state law (since IRAs aren’t ERISA). But with 401(k)s, that sign-off is required by federal law anyway (for any non-spouse primary beneficiary). So practically, the outcome is similar: spouse needs to consent to be bypassed. But the key nuance: if you had a government or church plan not covered by ERISA, state community property law might matter more.

• State Taxes on Inheritance: While there’s no federal “inheritance tax” or estate tax on a spouse (spousal inheritances are estate-tax free federally), a few states have inheritance or estate taxes. The good news is most states exempt transfers to a spouse as well. For example, Pennsylvania has an inheritance tax, but the rate for assets going to a spouse is 0%. So, state taxes usually don’t hit a spousal 401(k) transfer. But if you lived in a state with an estate tax (like Illinois or Massachusetts) and had a very large estate, the 401(k)’s value might contribute to an estate tax bill if above the state exemption – although, again, if everything goes to spouse, most states follow the federal lead and exempt spouses. It’s always wise to check your specific state’s estate tax rules if you’re affluent enough for it to matter (millions of dollars in assets).

• Non-ERISA 401(k)-Type Plans: Some retirement plans that look like 401(k)s aren’t subject to ERISA. Examples: government Thrift Savings Plan (TSP) or some 403(b)/457 plans for public employees, and solo 401(k)s for self-employed. These might follow federal or state rules differently. For instance, the federal TSP (for federal employees) actually defaults to the spouse as beneficiary by federal statute, similar to ERISA, and requires spousal consent to name someone else – so it’s actually aligned with the idea of protecting spouses. For a solo 401(k) (if you’re self-employed with no employees), ERISA doesn’t apply, so the plan documents and state law will guide what happens. Many solo 401(k) providers still ask for a beneficiary form and will default to spouse if none listed, but it’s not legally mandated the same way. If in a community property state, possibly a spouse could claim a share of a solo 401(k) if not named, so best to treat it as if the ERISA rules apply and just name your spouse or get a waiver.

• State Probate Nuances: If a 401(k) does end up in probate (say, no beneficiary and no spouse, or both die together), state law on intestacy (who inherits when no will) would determine who gets it, but that’s a backstop scenario. For a spouse, as long as they outlive the account owner, they’ll claim the account directly. If both die simultaneously (in an accident, etc.), then if no contingent beneficiary, it might go to the estate and through state intestacy, maybe to kids or other next of kin as state law says. That’s why it’s good to have contingent beneficiaries.

• Age of Spousal Consent: One quirky ERISA rule with a state flavor is: ERISA allows plans to require that a spouse be a certain age (like at least 35) before they can sign a valid waiver to give up inheritance rights. This is to prevent very young newlyweds from waiving rights possibly without understanding. Some states in their laws for similar pensions adopt this too. But for 401(k)s, it’s plan-dependent but allowed under federal law to not accept a waiver if the spouse is under 35. It’s a small nuance but worth noting: if you are 32 and your husband is 34 and you try to waive, the plan might say “wait until 35”.

Federal law largely standardizes 401(k) spousal inheritance across the U.S. The state you live in has minimal impact because ERISA’s spousal protection is uniform.

Pay attention if you have retirement accounts outside ERISA (like IRAs or non-ERISA plans), because that’s where state-specific community property or consent rules kick in. And always consider state estate taxes if you have a substantial balance – that’s more about estate planning than the 401(k) mechanism itself.

Pros and Cons of Spousal 401(k) Inheritance

Now, let’s summarize the advantages and disadvantages in a handy table. This should give a quick overview of what’s great and what’s challenging about a 401(k) transferring to a spouse after death:

As shown, spousal inheritance of a 401(k) has strong positives: legal protections, avoiding probate, tax-deferred rollover opportunities, and assuring the surviving spouse’s financial continuity. However, the cons remind us to do proper planning: watch out for tax implications (maybe consider a partial Roth conversion if appropriate while both spouses are alive), update forms, and communicate with family to avoid surprises or disputes.

FAQs

• Q: Does a spouse automatically inherit a 401(k) after death?
  A: Yes. In most cases, the surviving spouse is the default heir to a 401(k), unless a valid spousal waiver was signed to allow a different beneficiary.

• Q: Can I leave my 401(k) to someone else if I’m married?
  A: Only if your spouse signs a written, notarized consent (spousal waiver). Without it, federal law ensures your spouse is entitled to at least half, usually all.

• Q: What if my 401(k) beneficiary form lists someone other than my spouse?
  A: If you’re married and listed someone else, the plan typically requires your spouse’s signed consent. Without consent, your spouse could still claim a major portion by law.

• Q: Do 401(k) funds go through probate when left to a spouse?
  A: No, not if a beneficiary is named. The 401(k) passes directly to the spouse, bypassing probate, which speeds up access to the funds.

• Q: Are inherited 401(k) withdrawals taxable to the spouse?
  A: Yes. Withdrawals are taxed as regular income. But a spouse can roll the 401(k) into an IRA to continue tax deferral and control the timing of taxable distributions.

• Q: Can a spouse roll over an inherited 401(k) into their own IRA?
  A: Absolutely. A surviving spouse can do a spousal rollover, effectively treating the 401(k) assets as their own in an IRA, preserving tax benefits and often delaying RMDs.

• Q: What happens if we die at the same time?
  A: If no contingent beneficiaries are named, the 401(k) likely goes to the estate and through probate. It’s wise to name backups in case both spouses pass together.

• Q: Does a prenup or divorce decree override a 401(k) beneficiary?
  A: Not automatically. ERISA prioritizes the named beneficiary. An ex-spouse listed on the form will inherit, despite a divorce decree, unless the form is updated or state law voids it (ERISA often preempts state law).

• Q: How do community property laws affect my 401(k) after death?
  A: They mostly don’t. ERISA overrules state community property claims on 401(k) assets at death, so the plan pays as the beneficiary form and federal law direct.

• Q: Can my spouse disclaim the 401(k) inheritance?
  A: Yes, a spouse can refuse (disclaim) the inherited 401(k). It then goes to the contingent beneficiary or estate. This must be done in writing, typically within 9 months, and is irreversible.

• Q: Is there a deadline for a spouse to take over an inherited 401(k)?
  A: No hard deadline to roll it over, but to avoid required withdrawals, a spouse might transfer it by the end of the year following death. It’s best to decide promptly to optimize options.

• Q: What if the 401(k) owner had an outstanding loan when they died?
  A: The loan balance is usually canceled and treated as a taxable distribution from the 401(k) before transfer. The spouse inherits the remaining net account after the loan offset (with taxes owed by the estate or beneficiaries on that loan amount).

• Q: Are Roth 401(k)s treated differently for spousal inheritance?
  A: The inheritance process is the same, but Roth 401(k) withdrawals are tax-free if the account was held 5+ years. A spouse can roll a Roth 401(k) into a Roth IRA to avoid any RMDs.

• Q: Does a spouse need to be a certain age to inherit a 401(k) without penalties?
  A: No early withdrawal penalty for inherited accounts. If a spouse rolls it into their own IRA and they’re under 59½, they should wait to withdraw or use the inherited IRA route to avoid penalty.

• Q: Can same-sex spouses inherit 401(k)s the same way?
  A: Yes. Legally married spouses, regardless of gender, have identical rights under ERISA. The 401(k) will transfer to a surviving spouse in a same-sex marriage just as in any marriage.

• Q: How can I ensure my kids get my 401(k) if my spouse is provided for otherwise?
  A: You’d need your spouse to sign a waiver, then name your kids as beneficiaries. Alternatively, roll your 401(k) to an IRA (no spousal consent needed in most states) and name the kids there, but consult an advisor.

• Q: Will my spouse have to take money out of the inherited 401(k) immediately?
  A: Not immediately. They can usually leave it for a while. If they roll it into their own IRA, they follow normal IRA rules (no RMD until age 73). If they keep as inherited, they may need to take RMDs based on your age or theirs, depending on plan rules.

• Q: What if my 401(k) plan has an annuity option? Does my spouse get that?
  A: Some plans require married participants to take an annuity unless the spouse consents otherwise. If you had started a “joint and survivor annuity,” your spouse would continue getting payments for life. If not, and you die, the spouse can still take a lump sum or rollover as normal.

• Q: Should we consult a lawyer for 401(k) estate planning?
  A: It’s wise, especially if you have a complex family situation (second marriage, stepchildren, large balances). A lawyer can ensure waivers, trusts, or beneficiary forms align with your wishes and legal requirements.