<prompt> Human: My dad passed away a few months ago and had a 401K account with about 320K in it. My mom was under the assumption that she was the beneficiary of the account but, unbeknown to everyone, my dad changed the beneficiary at some point to be my sister.Dad had a will but the named beneficiary of the 401K apparently trumps the wills content so my sister is now the owner of the account. The 401K was supposed to be money that would supplement my moms pension and my sister wants to transfer it back to her.Unfortunately, it appears that transferring a 401K to another person is not possible. If my sister were to cash it out and gift it to my mom, shed have to first pay taxes plus a 10 penalty sister is in her 20s. Is all this correct? At that point, would my mom be limited to sticking the money in a regular brokerage account? Are there any ways to make the transfer without losing so much to taxesfees?My mom has set up an appointment with a lawyer to discuss this but I wanted to get your feedback and ideas as well. Thanks!  <response>: Your sister might be able to disclaim the 401k, but Im not sure whether it would subsequently go to your mother or whether this would avoid penaltiestaxes. I think the best approach is for your sister to roll over the 401k into an inherited IRA in her name, then begin taking the required minimum distributions out of the inherited IRA and gifting those distributions to your mother. There are no penalties for this or for withdrawing more than the RMD but there will be income taxes on the withdrawn amount. The inherited IRA should be set up at a low cost brokerage firm. 