Key Takeaways
Whether you can receive your dad’s pension depends on the type of plan he had and the beneficiary listed on the account. Pension benefits do not follow the will.
Defined contribution plans like 401(k)s usually allow children to inherit funds, while traditional employer pensions mostly provide survivor benefits only to a spouse unless specific options were chosen.
Social Security doesn't transfer as a pension, but certain survivors — mainly spouses and minor or disabled children — may qualify for monthly survivor benefits.
Most inherited retirement accounts are taxable and must be distributed under IRS rules, including the SECURE Act’s 10-year payout requirement for most non-spouse beneficiaries.
To claim any benefits, you must contact the plan administrator, provide required documents, complete the claim process, and consider consulting a financial advisor about distribution and tax issues.
Losing a parent is difficult, and managing their finances afterward can feel overwhelming. Sorting out whether you're entitled to any remaining retirement benefits is one of the many tasks you may face.
In the United States, the rules for inheriting a pension depend on the type of plan your dad had, the beneficiary he named, and specific federal regulations.
This Q&A explains how different pensions work, who can receive them, how survivor benefits are determined, and what steps you may need to take.
How Pensions Transfer After Death
Who can receive a deceased parent's retirement benefits?
A: It depends on the type of retirement plan and the beneficiary designation on file. Defined contribution plans, such as 401(k)s, 403(b)s, and IRAs, typically would have allowed your dad to name any beneficiary he chose, including adult children.
Defined benefit pensions, on the other hand, follow stricter federal rules that usually make the spouse the automatic beneficiary unless a notarized spousal waiver was signed. Social Security is not a pension and does not transfer, but certain survivors may qualify for monthly survivor benefits.
Does a will determine who inherits a pension?
A: No. Retirement accounts and pensions are governed by beneficiary designations and plan documents. A will does not override these rules. Even if your dad mentioned the pension in his will, the account will still be paid according to the plan’s paperwork.
What if no beneficiary was listed?
A: If your dad did not name a beneficiary, the plan’s default rules apply. Many defined contribution plans pay to the estate if no beneficiary is listed.
Defined benefit pensions generally default to providing a survivor benefit only to the surviving spouse. Adult children usually qualify only if the plan specifically allows them and no eligible spouse exists.
Defined Contribution Plans
Can I inherit my dad's 401(k), 403(b), or IRA?
A: You can if your dad named you as the beneficiary, or if the plan’s default rules place the account with you when no spouse or estate takes priority. Once inherited, you must follow IRS rules for distribution.
How are taxes handled for inherited retirement accounts?
A: Traditional inherited retirement accounts, like 401(k)s and IRAs, are generally taxable when you withdraw the funds. Under the SECURE Act, most non-spouse beneficiaries — including adult children — must fully withdraw the account by Dec. 31 of the 10th year after the original owner’s death. Inherited Roth IRAs are usually tax-free but still follow the 10-year rule unless an exception applies.
Defined Benefit Pensions
Can children inherit a traditional employer pension?
A: In most cases, adult children cannot inherit a traditional defined benefit pension. Federal law gives spouses automatic survivor rights unless they waive them.
Some plans offer limited benefits for dependent children (usually minors or full-time students), but adult children seldom qualify unless your dad selected a special payout option naming you before retirement.
What happens if my dad chose a single-life annuity?
A: Payments stop at death. Single-life pensions do not provide survivor benefits to spouses or children.
How are defined benefit pensions paid out after death?
A: If a survivor benefit exists, it is usually paid as monthly income to the eligible spouse. Lump sums are uncommon unless the plan specifically offers them.
Social Security Survivor Questions
Can I receive my dad's Social Security after he dies?
A: Social Security benefits do not transfer to adult children unless they are disabled. Survivor benefits may be available to a surviving spouse, children under age 18 (or 19 if still in high school), disabled adult children, or dependent parents.
Claiming a Parent's Pension
What steps do I take first?
A: Contact the plan administrator and report your dad’s death. You will likely need his full legal name, Social Security number, birthdate, date of death, and a certified death certificate. Once eligibility is confirmed, the plan will provide the necessary claim forms.
What documents will I need?
A: Requirements vary by plan but typically include identification for you, proof of relationship, a death certificate, and any existing beneficiary designation forms. If the estate is involved, you may also need letters testamentary.
What payout options might be available?
A: Defined contribution plans often allow you to transfer the funds into an inherited IRA or take a lump sum. Defined benefit plans, when survivor benefits exist, typically offer monthly payments only. Each option has tax implications, so reviewing them carefully is important.
Should I speak with a financial advisor?
A: Yes. A financial advisor can help you understand tax consequences, compare payout options, and decide the best way to manage any funds you inherit.
Practical Tips for Handling Your Dad's Retirement Benefits
If you're struggling with where to begin collecting your dad’s retirement pension, these tips will help you get on the right track.
Stay Organized
Organization is key when it comes to transferring your dad’s retirement pension. You will need to collect and manage many legal documents in order to transfer your dad's pension to your ownership. Using a secure digital vault such as Trustworthy's Family Operating System® can help you keep everything organized and available as you move through each step.
In addition, you should also take notes anytime you are on the phone with someone who is helping you with the transfer. Be prepared to follow instructions and write them down so you won't forget what you must do as you work toward your goal.
Follow Up Persistently
Getting ahold of the right people to help answer your questions or begin a process can be frustrating. You may have instances where the provision plan administrator isn't accepting or returning your calls.
The important thing is not to get discouraged and give up, even when you feel like you haven’t made much progress. If someone you are calling doesn't pick up the phone, always leave a detailed message with your name, the purpose of the call and your number.
Consult a Professional
If you begin to feel overwhelmed or discouraged about what to do next, consider contacting a professional who can help guide you.
Financial advisors or planners are generally a good choice of professionals to contact regarding information on transferring retirement pensions. Another possibility would be speaking with someone who specializes in life insurance plans.
Whoever you decide to reach out to, be sure they’re a reputable professional working in the area where you’re struggling to get answers.
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