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Inherited 401(k)s: 6 Questions Heirs Need to Ask

By Rachel L. Sheedy

A rollover gives nonspouse beneficiaries all the options available to any IRA heir. Under current rules, that includes the ability to stretch required distributions over a beneficiary’s own life expectancy—which is “typically the most tax-efficient strategy,” says Eric Bronnenkant, the head of tax at Betterment for Business. The less you take out, the smaller your tax bill will be and the more money that can stay in the account to grow tax deferred.

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This article originally published May 30th, 2019 on Kiplinger