Does someone single need life insurance?

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Originally Posted by Broken Arrow

Retirement money, I believe, can be rolled on to your next of kin or beneficiary. I'll have to double check on that, but I'd rather do that...

There are different categories of retirement money. Pre-tax money such as a 401K can be tricky. Each 401K has different rules, but most want the money kicked out of the fund ASAP in the case of the untimely death of the account owner.

The rules (for DHes and my 401k, anyway) have changed in the past couple of years. It used to be non-spouses could only take a lump sum distribution and that could have a serious impact to the beneficiaries tax situation. Now, in addition to a lump sum distribution, non-spouse beneficiaries have an addtional choice: they can do a partial or total direct transfer of the 401K funds directly into a decedent IRA. (The key is it has to be a direct transfer.) The decendent IRA spreads the distributions out over the lifetime of the beneficiary. The rules governing inherited IRAs are complicated and it is recommended to seek advice of a tax professional before making a transfer (or distribution).