401(k) Beneficiary Designations & SECURE Act Rules

Protecting your legacy: spouse rules, 10-year distribution rules, and estate planning

Your 401(k) beneficiary designation overrides your will. The SECURE Act of 2019 changed rules dramatically for non-spouse beneficiaries, requiring most to empty inherited accounts within 10 years.

SECURE Act 10-Year Rule

Most non-spouse beneficiaries must now distribute the entire inherited 401(k) within 10 years. Exceptions: surviving spouses, minor children (until age 21), disabled/chronically ill, and beneficiaries within 10 years of the deceased's age.

Per Stirpes vs. Per Capita

Per stirpes passes a deceased beneficiary's share to their children. Per capita divides equally among surviving beneficiaries. Per stirpes protects grandchildren's inheritance.