A Retirement Account Beneficiary Designation determines who will receive tax-advantaged retirement assets—such as IRAs, Roth IRAs, 401(k)s, and other qualified plans—upon your death. IRAs are governed by the Internal Revenue Code and do not fall under ERISA, meaning they do not require spousal consent and are generally subject to state law principles (including Texas community-property rules). By contrast, most employer-sponsored plans (like 401(k)s) are governed by ERISA, which preempts state law, imposes mandatory spousal-consent rules, and gives federal priority to the beneficiary designation on file. The beneficiary classification then determines the post-death Required Minimum Distribution (RMD) schedule under the SECURE Act.
