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Inherited 401(k): Everything Beneficiaries Need to Know

You should do everything you can to take full advantage of the financial opportunity that inheriting a workplace retirement account gives you.

By Kailey HagenUpdated May 2, 2025 at 10:40 PM

Key Points

  • Beneficiaries will be responsible for taxes if the money comes from a traditional 401(k).
  • Options for 401(k) withdrawals include lump sums, rollovers, and fixed-period distributions.
  • Strategies differ for spouses versus other beneficiaries, affecting taxes and access to funds.

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