401(k)s and estates: What you need to know

You worked hard all your life, contributed regularly to your 401(k), and built a healthy balance. You may want to leave some of that money to your heirs. Of course, the last thing you want is for a big chunk to be taken out for taxes, or for your heirs to be left with a tax burden. In fact, two of the biggest tax considerations affecting how your 401(k) account will be distributed after you die are when the income tax is paid and by whom.