Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

What happens to 401(k) money that isn't used by the time the account holder dies?
It goes to the beneficiaries, not necessarily the heirs. Taxation is a bit complicated and depends also on the plan requirements, the new owners' decisions, and the last status of the deceased owner. You should really talk to a tax adviser with the specific details to get a reliable answer that would address your situation. You should also ask about State inheritance taxes for the deceased and the beneficiaries' states. Here's the NOLO article on the issue.