Topic
Retirement accounts — the will doesn't control them.
IRAs, 401(k)s, life insurance, and TOD/POD bank accounts pass by beneficiary form, not by your will. The single most expensive estate-planning oversight is letting old beneficiary designations stay current.
The four things to know
Quick takeaways.
Beneficiary forms beat the will
A 401(k) beneficiary form naming your ex-spouse from 2018 will pay your ex-spouse, no matter what your will says. Audit every account every few years.
10-year rule replaced the stretch IRA
Most non-spouse beneficiaries must distribute an inherited IRA within 10 years. Plan for the tax compression — Roth conversions during your life can help.
Spouses still have full options
A surviving spouse can roll an inherited IRA into their own. The rules tightened for everyone else, not for spouses.
Charity-as-beneficiary is the most efficient bequest
Charities pay no income tax. Naming a charity as IRA beneficiary delivers the full account value to the cause, which a will-and-cash bequest can't.
Cornerstone reading
Go deep.
Retirement accounts and your will
Why your will doesn't control your IRA or 401k — and how the SECURE Act changed what your beneficiaries inherit.
Read →Charitable giving in your will
How to leave money to charity through a will, beneficiary designations, and trusts — and why the "where" matters as much as the "how much."
Read →
If this is you
Pick the path that matches your situation.
Ready to put this in writing?
A signed will is the foundation. Trusts and other structures build on top.