November 3, 2025

What Is a Qualified Retirement Account? And Why It’s Often the Most Overlooked Part of Your Estate Plan?

Part One of a Three-Part Series on Estate Planning with Your Qualified Retirement Plan

You’re at a family barbecue, flipping burgers, when your brother corners you with a question: “Hey, I just rolled over my 401(k) into an IRA. That’s good, right? But what happens to it when I die?” You pause, spatula mid-air, and realize brother’s not alone—most people have no idea what happens to their retirement accounts when they’re gone.

So let’s break it down.

What Is a Qualified Retirement Account?

A qualified retirement account is a type of savings account that gets special tax treatment under IRS rules. Think of it as a government-approved way to save for retirement. Common examples include:

  • 401(k) plans (usually offered by employers)
  • Traditional IRAs and Roth IRAs
  • 403(b) plans (for teachers and nonprofit employees)
  • SEP IRAs and SIMPLE IRAs (for small business owners and self-employed individuals)

These accounts are “qualified” because they meet specific IRS requirements that allow you to defer taxes—either when you put money in, or when you take it out. But here’s the kicker: while they’re great for retirement, they can be tricky when it comes to estate planning.

Setting Up Your Beneficiaries For Your Qualified Retirement Accounts

When it comes to estate planning, your qualified retirement account (i.e. your IRA, 401(k), etc.) is usually the most overlooked part of your estate plan. Most people don’t receive enough direction when it comes to their qualified retirement account. Often you’re told what you shouldn’t do, but not what you should do.

Your qualified retirement account cannot be owned by your trust. When you pass away, there should be a beneficiary that you’ve named on the account who can receive the remaining funds. And if you’re like most people, you will either list your surviving spouse, if there is one, or your surviving children.

But is that always the best choice? That’s where an estate planning attorney can help.

Got Questions? Let’s Talk.

If you’re unsure about how your retirement accounts fit into your estate plan, I’d be happy to help. Let’s make sure your hard-earned retirement funds go exactly where you want them to.  Kent M. Brown, kbrown@strongandhanni.com, (801) 323-2039 – ask for Lisa to schedule a time to talk.