What if a beneficiary dies from a policyholder 401K?

If a beneficiary dies before the policyholder of a 401(k), the account's assets typically pass to the contingent beneficiaries designated in the plan. If no contingent beneficiaries are named, the funds may go to the deceased beneficiary's estate, subject to probate. It's essential for policyholders to regularly review and update their beneficiary designations to ensure their assets are distributed according to their wishes. Additionally, tax implications may arise depending on how the assets are distributed.