How is your spouse taxed on your 401k time of death?

Upon your death, your spouse typically has several options regarding your 401(k) account. If your spouse is the designated beneficiary, they can choose to roll over the 401(k) into their own retirement account, which allows them to defer taxes until they withdraw funds. Alternatively, they may opt to take a lump-sum distribution, which would be subject to ordinary income tax. The specific tax implications can vary based on individual circumstances and tax laws, so it's advisable for your spouse to consult a tax professional for personalized guidance.