Retirement accounts, such as 401(k)s, 403(b)s, and IRAs (Traditional or Roth), require meticulous review. Beneficiaries of these accounts may deviate from the stipulations outlined in the will, trust, or other instructions if the updates have not been made.

Retirement accounts are distinguished from other investment accounts in that their basis is not reset. The government anticipates receiving the tax benefit deferred through the utilization of a retirement account. Depending on the type of retirement account, there may be an extended period to distribute the assets. For instance, an inherited IRA typically grants a ten-year window to distribute the assets to beneficiaries. While there is no obligation to adhere to this timeframe, it may provide individual beneficiaries with more benefit or less tax burden by spreading out disbursements. It is advisable to consult with a tax professional to determine the most suitable course of action in your specific situation.