Does a 401(k) or IRA go through probate?

Usually not. Like life insurance, these accounts pass by beneficiary designation directly to whoever is named on file with the plan administrator or custodian, regardless of what the will says. Probate only gets involved if no beneficiary is named, the named beneficiary died first with no backup listed, or the estate itself is named as beneficiary.

What can a surviving spouse do with an inherited 401(k) or IRA?

A spouse has the most flexibility: roll the funds into their own IRA and treat it as if it were always theirs (delaying withdrawals until their own required age), remain as a named beneficiary on an inherited account, or, for a 401(k), sometimes leave it in the existing plan. Rolling it into their own IRA is the most common choice when the spouse doesn't need the money right away.

How long does a non-spouse beneficiary have to withdraw an inherited IRA?

Under the SECURE Act, most non-spouse beneficiaries must withdraw the entire balance of an inherited IRA or 401(k) within 10 years of the owner's death. There's no requirement to take a set amount each year in most cases — you can spread withdrawals out or take them all at once, as long as the account is empty by the end of year 10. A few 'eligible designated beneficiaries,' such as a minor child of the deceased, a disabled or chronically ill beneficiary, or someone close in age to the deceased, may qualify for different rules — this is worth confirming with a tax advisor given how often the details have changed.

Are withdrawals from an inherited 401(k) or IRA taxable?

Withdrawals from a traditional (pre-tax) 401(k) or IRA are generally taxed as ordinary income to the beneficiary in the year they're taken. Withdrawals from a Roth IRA or Roth 401(k) are generally tax-free if the original account met the Roth holding period, though the same 10-year emptying rule still applies to most non-spouse beneficiaries.

What happens if no beneficiary was named on the account?

If no beneficiary is listed, or the named beneficiary predeceased the owner with no contingent beneficiary on file, the account typically becomes payable to the deceased's estate. It then passes according to the will (or state intestacy law if there isn't one) and may need to go through probate, and the accelerated withdrawal rules that apply to estates are often less favorable than those for an individual beneficiary.

What Happens to a 401(k) or IRA When the Owner Dies?

Retirement accounts don't work like the rest of the estate. A 401(k) or IRA passes to whoever is named as beneficiary on file with the plan or custodian — not according to the will, and usually without going through probate at all. That makes finding and correctly claiming these accounts one of the more consequential tasks for a surviving spouse, child, or executor.

Beneficiary Designations Control the Account

Like life insurance, a 401(k) or IRA is a "non-probate asset" as long as a living beneficiary is named. The beneficiary form the account owner filled out with the plan administrator or brokerage overrides whatever the will says — even if the will explicitly tries to leave the account to someone else. This is why outdated beneficiary forms are one of the most common estate-planning mistakes; an ex-spouse named decades ago can still legally inherit the account.

If no beneficiary is named, or the named beneficiary died before the account owner with no backup listed, the account typically falls back to the estate and gets distributed through probate under the will or state intestacy law — often on less favorable withdrawal terms than an individual beneficiary would get.

Step 1: Find Every Account

Retirement accounts are easy to lose track of, especially old 401(k)s from past employers. Look through:

Pay stubs and old employer benefits paperwork
Tax returns, which report IRA and retirement account activity
Statements (mailed or in email) from brokerages, banks, or plan administrators
Former employers' HR or benefits department, who can confirm whether a 401(k) balance still exists

Step 2: Contact the Plan Administrator or Custodian

For a 401(k), that's the employer's plan administrator (often a company like Fidelity or Vanguard managing the plan). For an IRA, it's the custodian — the brokerage or bank where the account is held. Either way, they'll walk you through their specific death-claim process and tell you what documents they need.

Step 3: Submit the Claim

Most administrators and custodians require:

A certified death certificate
Proof of your identity
A completed beneficiary claim form

Step 4: Choose Your Distribution Option

What happens next depends heavily on your relationship to the account owner.

If You're the Surviving Spouse

Spouses get the most flexibility. Common options include:

Roll it into your own IRA. The account becomes yours outright, and you follow the same withdrawal rules as if you'd owned it from the start — including delaying withdrawals until your own required age.
Remain a beneficiary on an inherited account. Useful if you need access to the funds sooner, since inherited-account withdrawals aren't subject to the early-withdrawal penalty that applies to your own IRA before retirement age.

If You're a Non-Spouse Beneficiary (Adult Child, Sibling, Friend)

Most non-spouse beneficiaries must open an inherited IRA and, under the SECURE Act, empty the account within 10 years of the owner's death. Within that window you generally have flexibility in how you space out withdrawals — there's usually no fixed annual minimum — but the account must be fully distributed by the end of year 10. A narrower group of "eligible designated beneficiaries" (minor children of the deceased, disabled or chronically ill individuals, and beneficiaries not much younger than the deceased) may qualify for different, often more generous, timelines. Because these rules have been revised more than once since 2019, confirm your specific situation with a tax advisor before deciding how to withdraw.

Taxes on Inherited Retirement Accounts

Traditional 401(k) or IRA: Withdrawals are taxed as ordinary income to whoever takes them, in the year they're taken.
Roth IRA or Roth 401(k): Qualified withdrawals are generally tax-free, but the same 10-year emptying deadline still applies to most non-spouse beneficiaries — the money doesn't have to stay invested tax-free forever.

Because a large lump-sum withdrawal can push a beneficiary into a higher tax bracket, many people spread withdrawals across several years within the 10-year window rather than taking everything at once.

How This Fits Into the Bigger Picture

Retirement accounts are usually one of the largest assets in an estate, so tracking them down and claiming them correctly matters — both for the family's finances and for the executor's recordkeeping, even when the account itself skips probate. If you're organizing accounts as part of broader estate planning, keeping beneficiary designations current is one of the simplest, highest-impact things you can do.

How EstateWrap Helps

EstateWrap helps families track down every account — bank, brokerage, retirement, and insurance — and keeps a checklist of what's been claimed and what's still outstanding. Start free — unlock every premium template for a one-time $44 (lifetime access, no subscription).