Inherited accounts
Inherited Schwab 401(k): Claim Process, Titling, and RMD Deadlines
Schwab's beneficiary process moves quickly once the death certificate lands — which makes it easy to sign a distribution election before understanding that some elections are permanent.
Here is the claim sequence, the inherited-IRA titling that keeps the account tax-deferred, and the distribution deadlines that apply after the 2024 final regulations.
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
Order 3–5 certified copies of the death certificate — Charles Schwab and every other institution will each want one.
- 2
Call Charles Schwab'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
Ask Charles Schwab to CONFIRM you are the beneficiary of record before discussing options — plan documents control, not the will.
- 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
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
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.
Charles Schwab beneficiary services: 1-800-435-4000 · 24/7
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.