What Happens to 401(k) When You Die?

Knowing what happens to 401k when you die is vital for planning your estate. Generally, upon the account holder’s death, the 401(k) funds will be passed on to the named beneficiaries. In cases where there are no beneficiaries, the assets may become part of the deceased’s estate, subject to distribution according to the will or local laws. To avoid complications, it is wise to regularly update beneficiary information on a 401(k) account.

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