When you die your 401k becomes part of your estate and is ultimately transferred to your beneficiaries. When you open your 401k at least one beneficiary is named who will inherit the funds upon your passing. If no beneficiary is named the 401k becomes part of your estate. If your spouse is the named beneficiary of the 401k, he or she would be able to roll it into their own 401k or IRA. The advantage is that your spouse will avoid the early...