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 recipients. Your 401(k) could be one of your biggest assets. But what happens to it after you die? Unlike other parts of your estate, a 401(k) doesn’t get handled through your will. It follows a different path—and i ...

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 ...

MoMo Productions / Getty Images Designate your heirs as your beneficiaries to ensure they receive your 401(k). 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 recipients. Your 401(k) could be one of your biggest assets. But what happens to it after you die? Unli ...