401(k) Beneficiary Guide

401(k) Beneficiaries: Who Gets Your 401(k)?

A beneficiary designation helps determine who receives your 401(k) benefits after your death. Learn how beneficiary designations work, spouse rules, life-event updates and inherited 401(k) distribution basics.

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What Is a 401(k) Beneficiary?

A 401(k) beneficiary is the person or entity designated to receive retirement-plan benefits after the account owner's death. The plan establishes the procedures for making and changing beneficiary designations.

Beneficiary designation matters

Your 401(k) plan generally follows its beneficiary procedures when determining who receives the account after your death.

Keep the designation current

Marriage, divorce, children and other major life changes can be reasons to review your beneficiary information.

Beneficiary Types

Who Can Be a 401(k) Beneficiary?

The people or entities you can designate depend on the terms and procedures of your retirement plan.

Spouse

A spouse commonly has special rights under retirement-plan rules, including rules governing changes to beneficiary designations.

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Children or Family

A participant may be able to designate children or other eligible individuals according to the plan's procedures.

Other Individuals

A beneficiary can generally be an individual selected under the plan's beneficiary designation process.

Trusts or Entities

Some plans may permit a trust or another entity to be named. Plan rules and legal considerations can affect the result.

Multiple Beneficiaries

Plan forms may allow multiple beneficiaries and specify how benefits are divided among them.

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Plan-Specific Rules

Always check your plan documents and beneficiary form because the plan document determines available procedures and options.

How It Works

How a 401(k) Beneficiary Designation Works

The process is usually straightforward, but the beneficiary form must be completed according to your plan's requirements.

01

Review Your Plan

Find your plan's beneficiary rules and current designation.

02

Choose Beneficiaries

Select the people or entities permitted by the plan.

03

Complete the Form

Follow the administrator's instructions and required signatures.

04

Review Regularly

Revisit your designation after important life changes.

Important Rule

401(k) Spouse Beneficiary Rules

Married participants can face special beneficiary requirements. The exact rule depends on the type of plan and its provisions.

Marriage can change your beneficiary requirements.

Many retirement plans require a married participant's spouse to be the primary beneficiary unless the spouse provides the required consent to another designation.

Review your beneficiary designation when you get married.

Some plans require written spousal consent to name someone other than your spouse.

Follow the plan administrator's specific procedure for changing beneficiary information.

Do not assume an old beneficiary form automatically reflects your current family situation.

Inherited 401(k)

What Happens to a 401(k) After the Owner Dies?

The beneficiary may have distribution options, but the applicable rules depend on factors such as the beneficiary's relationship to the account owner, the date of death and whether the beneficiary qualifies for an exception under the applicable rules.

Spouse Beneficiary

Spouses may have additional options

A surviving spouse may have more distribution options than a non-spouse beneficiary. Depending on the circumstances, the spouse may be able to roll the account into their own IRA or keep it as an inherited account.

  • May have special rollover options
  • May keep the account as inherited
  • Distribution rules depend on circumstances
  • Plan terms can affect available choices
Non-Spouse Beneficiary

Distribution rules can be different

For deaths occurring after 2019, the SECURE Act changed many beneficiary distribution rules. Eligible designated beneficiaries can receive different treatment from other designated beneficiaries.

  • Some beneficiaries are subject to the 10-year rule
  • Eligible designated beneficiaries have special treatment
  • Age and relationship can matter
  • The plan administrator can explain available options
Distribution Basics

Understanding the 10-Year Rule

Many designated beneficiaries of retirement accounts inherited after 2019 are subject to a rule requiring the account to be emptied by the end of the 10th year following the owner's death. Exceptions can apply.

Who may be subject to it?

A designated beneficiary who is not an eligible designated beneficiary may generally be subject to the 10-year rule.

Who can have different treatment?

Eligible designated beneficiaries can include a surviving spouse, certain minor children, disabled or chronically ill individuals and certain beneficiaries who are not more than 10 years younger than the participant.

Keep It Current

Life Events That Can Trigger a Beneficiary Review

Beneficiary information can become outdated as your family and circumstances change.

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Marriage

Review your designation and understand any spousal consent rules.

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New Child

Consider whether your beneficiary designations still reflect your family situation.

Divorce

Review beneficiary records and understand how your plan and legal documents interact.

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Death of a Beneficiary

Update your designation if a named beneficiary dies before you.

Quick Checklist

401(k) Beneficiary Checklist

Use this checklist as a starting point when reviewing your retirement account beneficiary information.

Find your current beneficiary designation Check your plan website, account documents or contact your administrator.
Confirm the beneficiary information Check names and other required information for accuracy.
Review your spouse status Understand whether your plan requires spousal consent for changes.
Consider primary and backup beneficiaries Use the options permitted by your plan's beneficiary form.
Review after major life changes Marriage, divorce, children and beneficiary deaths can warrant an update.
Keep a record of the update Confirm that your plan administrator accepted the new designation.
FAQ

401(k) Beneficiary Questions

Common questions about beneficiary designations and inherited retirement accounts.

A beneficiary is the person or entity designated to receive benefits from a retirement account after the account owner's death, according to the plan's rules and beneficiary procedures.

Many plans require a married participant's spouse to be the primary beneficiary unless the spouse provides the required consent to another beneficiary. The exact requirements depend on the plan.

In many plans, this is possible with the required spousal consent. Check your plan's beneficiary procedures before making a change.

The designated beneficiary generally becomes entitled to the benefits according to the plan's rules. Distribution and tax rules can depend on whether the beneficiary is a spouse, another eligible designated beneficiary or another type of beneficiary.

For many designated beneficiaries of participants who died after 2019, the inherited account generally must be distributed by the end of the 10th year following the year of death. Certain eligible designated beneficiaries can receive different treatment.

Review it after major life events such as marriage, divorce, the birth or adoption of a child, or the death of a named beneficiary. A periodic review can also help keep the designation current.

Keep Your 401(k) Plan Connected to Your Life Plan.

Understanding beneficiaries is one part of building a complete retirement plan. Explore more 401(k) guides and calculators on 401k.blog.

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Educational disclaimer: 401k.blog provides general educational information about retirement plans and should not be considered legal, tax or financial advice. Beneficiary rights, distribution options and tax treatment can depend on the specific retirement plan and individual circumstances. Review your plan documents and consult the plan administrator or a qualified professional when appropriate.