What Happens to Your 401(k) and IRA When You Die -- What Heirs Need to Know

The article explains how inherited 401(k)s and IRAs are treated differently depending on the heir's relationship to the deceased. Surviving spouses have more flexibility with rollover options, while non-spouse beneficiaries must transfer assets to inherited IRAs and typically withdraw funds within 10 years. A key tax advantage exists for 401(k)s with appreciated company stock through Net Unrealized Appreciation (NUA), which can save significant taxes.