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Inherited accounts

Inherited Empower 401(k): How Beneficiaries Claim Without Triggering Tax

Empower administers thousands of employer plans, and its default paperwork can steer a beneficiary toward a lump-sum check — the single most expensive mistake a non-spouse beneficiary can make.

This guide covers the claim call, the direct-transfer language to insist on, and the RMD clock that starts the year after death.

The one mistake that cannot be undone

A non-spouse beneficiary has NO 60-day rollover. If the plan cuts a check in your name and you deposit it, the entire account becomes taxable income that year — there is no Rev. Proc. self-certification, no IRS letter, no fix. The ONLY safe move is a direct trustee-to-trustee transfer into a properly titled inherited IRA. If anyone offers to "just send you a check," stop the call and get help first.

How to claim, step by step

  1. 1

    Order 3–5 certified copies of the death certificate — Empower and every other institution will each want one.

  2. 2

    Call Empower's beneficiary-services line and ask for the "death claim" or "beneficiary distribution" package for the specific plan. Have the deceased's SSN, date of death, and your ID ready.

  3. 3

    Ask Empower to CONFIRM you are the beneficiary of record before discussing options — plan documents control, not the will.

  4. 4

    Before signing anything, decide the destination: a properly titled inherited IRA (e.g., “Jane Doe, deceased, FBO John Doe, beneficiary”). Titling errors are treated as full distributions.

  5. 5

    Insist on a DIRECT trustee-to-trustee transfer into the inherited IRA. Decline any option that mails you a check payable to you personally.

  6. 6

    Get the transfer confirmation in writing, then calendar your RMD obligations for the current year — the deceased's year-of-death RMD may still be due.

Empower beneficiary services: 1-855-756-4738 (former Empower Retirement); 1-800-345-2345 (Prudential-acquired plans) · Mon-Fri 8am-10pm ET, Sat 9am-5:30pm ET

Your distribution clock (2026 rules)

  • Most non-spouse beneficiaries must empty the inherited account by December 31 of the 10th year after the death (SECURE Act 10-year rule).
  • Under the July 2024 final regulations, if the original owner had already begun RMDs, you must ALSO take annual RMDs in years 1–9 — enforced beginning in 2025.
  • A missed RMD carries a 25% excise tax on the shortfall (reducible to 10% if corrected within the correction window).
  • Spouses have different options (including treating the account as their own). Eligible designated beneficiaries — minor children, disabled or chronically ill beneficiaries, or beneficiaries not more than 10 years younger — may use life-expectancy payouts instead.

Common questions

Can I roll an inherited 401(k) into my own IRA?

Only a surviving spouse can. A non-spouse beneficiary can only move the money by direct transfer into an inherited IRA titled in the deceased's name for your benefit — never into your own IRA, and never via a check made out to you.

Is there a 60-day rollover window for inherited accounts?

Not for non-spouse beneficiaries. The 60-day indirect rollover does not exist for them — a distribution check payable to a non-spouse beneficiary is immediately and irreversibly taxable.

When do I have to empty the account?

Under the SECURE Act's 10-year rule, most non-spouse beneficiaries must fully distribute the account by the end of the 10th year after death — and if the original owner had begun RMDs, annual distributions are also required in years 1–9 (enforced from 2025).

What happens if I miss a required distribution?

A 25% excise tax applies to the amount you should have taken (reduced to 10% if you correct it promptly by taking the distribution and filing Form 5329). The rules changed in 2024–2025 — many older articles are out of date.

Questions about your situation?

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Educational information, current to the July 2024 final regulations as enforced in 2026 — not tax, legal, or financial advice. Beneficiary elections are frequently irreversible; verify with your own CPA or estate attorney before acting. Estate deadlines (including the 9-month federal estate-tax election window) exist — consult the estate's attorney.