Core Insights - The importance of beneficiary designations in retirement accounts is emphasized, as outdated information can lead to unintended consequences regarding asset distribution [1][3] - Retirement accounts like IRAs and 401(k)s are governed by beneficiary designations rather than wills, which can result in disinheritance if not properly updated [3][4] Group 1: Beneficiary Designations - Beneficiary designations must be reviewed regularly to ensure retirement accounts are prepared for transfer to heirs [2] - The rules governing retirement accounts allow them to bypass the probate process, facilitating quicker access to funds for heirs [4] Group 2: Tax Implications and Distribution Rules - Spouses inheriting an IRA or 401(k) can roll the funds into their own accounts and may delay required minimum distributions (RMDs) until age 73, allowing for tax-free growth [5] - Children inheriting these accounts do not have the same rolling option and must either take a lump-sum payment or distribute the funds over a maximum of 10 years [5][6]