The benefits within your IRA will pass directly to your named beneficiaries without being subject to the estate probate process.

Investments in a Traditional IRA or 401(k) retain most of their character as an IRA or 401(k), but they generally must be withdrawn from those accounts over time. The timing of withdrawals depends on whether your spouse inherits it or another beneficiary (such as your child). 


If your primary beneficiary is your spouse, they have the option of "assuming" the IRA (taking ownership). This option could continue to defer taxes on the IRA even longer.

Any other recipient has to take distributions based on either a five-year timeline or his/her expected lifespan. 

What happens if there's no named beneficiaries?

If you don't name a beneficiary, or if all of the primary and contingent beneficiaries die before you, the IRA becomes part of your estate.

The proceeds of the IRA are then divided according to your will. If you don't have a will, the courts decide who gets the money from the IRA after taxes are assessed.