Traditional 401(K) Heirs Face Tax Surprises
12 Oct 2026 · 0 min
0:23
In this brief advisory segment, the speaker warns that inheriting a large traditional 401(k)—for example, a $1.6 million balance—can create a significant tax surprise for non‑spouse heirs. He explains that most non‑spouse beneficiaries must withdraw the account within ten years, which can push them into higher tax brackets. He advises viewers to project the beneficiaries’ future income, consider staged Roth conversions to spread tax liability, and to finalize an inheritance tax strategy before the end of the year.
