How Your 401(k) is Handled After Death: What Beneficiaries Should Understand

Maskot / Getty Images “The most common mistake I have seen is that there is no beneficiary named at all,” Helveston said. In that case, the account may have to go through probate—a costly, time-consuming legal process. Key Takeaways Your 401(k) passes to the person you name on a beneficiary form—not through your will. Spouses and non-spouses face different rules and tax implications when inheriting a 401(k). Forgetting to update your beneficiary or leaving it blank can lead to probate and unintended ...