US FederalWhat happens to my 401(k) or IRA when I die?
When you die, your 401(k) or IRA passes to the beneficiaries you named — not through your will — and is subject to required minimum distributions and tax rules for heirs.
What the Law Says
Federal law governs how retirement accounts like 401(k)s and IRAs are handled after death — focusing on beneficiary designations, distribution rules, and tax treatment. ERISA and the Internal Revenue Code set the framework.
Your 401(k) is governed by the Employee Retirement Income Security Act (ERISA), which requires that a spouse be the automatic beneficiary unless they waive that right in writing. This protects spouses from being disinherited unintentionally.
IRAs are not covered by ERISA but follow IRS rules under the Internal Revenue Code. Both 401(k)s and IRAs require you to name beneficiaries — and those designations override any instructions in your will or trust.
Under current law (SECURE Act of 2019, incorporated into the IRC), most non-spouse beneficiaries must withdraw the full account balance within 10 years of the account owner’s death — with limited exceptions for eligible designated beneficiaries (e.g., minor children, disabled individuals, or those not more than 10 years younger than the deceased).
Statutory TextThe Congress finds that the growth of employee benefit plans has been rapid, and that approximately 45 million workers and their dependents are covered by such plans.
— 29 U.S.C. § 1001 — Congressional findings and declaration of policy
Statutory TextA trust shall not constitute a qualified trust under this section unless the plan provides that… benefits provided under the plan shall be paid to the participant’s spouse (if any) unless the spouse waives the right to such benefits.
— 26 U.S.C. § 401(a)(11) — Qualified pension, profit-sharing, and stock bonus plans
What to Do
Name (and update) beneficiaries on all retirement accounts — both primary and contingent.
If married, ensure your spouse signs a notarized waiver if you wish to name someone else as beneficiary of your 401(k).
Review beneficiary designations after major life events (marriage, divorce, birth, death).
Advise beneficiaries about post-death distribution rules — especially the 10-year rule for non-spouses.
Consider naming a trust as beneficiary only with qualified legal counsel, due to complex IRS requirements.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.