Who gets your 401(k) when you're dead?

“I have known not a few men who, after reaching the summits of business success,
found themselves miserable on attaining retirement age.” -B. C. Forbes

A 401(k) is a great way to save money if you work for a company that supports this program. You can request that each month, money is taken from your pay check and kept in an account (often mutual funds you select from a list) that will be manged by the company until you retire. Since this blog is about preparedness I won't go into further 401(k) details except to recommends these web sites:
http://money.howstuffworks.com/personal-finance/financial-planning/401k.htm
http://employeebenefits.about.com/od/retirementoptions/a/401kBasics.htm

The reason I bring up 401(k)s is the article , You're dead: Where's your 401(k)? on MSN Money. One common mistake with 401(k)s is the lack of follow-up when your life changes. When you register for a 401(k) your current spouse is automatically entitled to survivor benefits under Federal Law unless he/she agrees to sign away their rights. That's true even if you identified someone else when you filled out the paperwork to start contributing to the plan. If you divorce and remarry, the first spouse gets the 401(k) money unless you fill out the paperwork requesting a change AND the first spouse agrees.

Perhaps you're single and named a college friend as your 401(k) beneficiary but now you are not on speaking terms. Update the paperwork!

Bottom Line
I recommend reading You're dead: Where's your 401(k) for more information including naming your minor-age children as beneficiaries and for instructions on how to collect the 401(k) money without penalties after a death.