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Pension, Retirement, and Investment Accounts

What if the retirement account had no named beneficiary?

Short answer

It goes through the estate. Depending on the plan rules, the estate may receive a lump sum. Without a named beneficiary, the favorable inherited IRA rollover option may not be available — the account may have to be distributed faster and taxed…

What this usually means

It goes through the estate. Depending on the plan rules, the estate may receive a lump sum. Without a named beneficiary, the favorable inherited IRA rollover option may not be available — the account may have to be distributed faster and taxed accordingly. This is why beneficiary designations matter so much.

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