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Millions of Americans now hold IRAs, but a simple oversight can be costly, a Prudential Retirement Strategies expert warned at a financial planning conference in Las Vegas. Failing to update beneficiary designations—sometimes leaving an ex-spouse in place—can supersede a will and send accounts through probate. If no beneficiary is named, the estate often inherits, triggering a quick, five-year payout window and steep taxes, with estate income hitting the 37% bracket above $15,650 in 2025. With 58 million households holding $16.2 trillion, rollovers have heightened the need for careful paperwork. Non-spouse heirs typically have 10 years.

Prepared by Christopher Adams and reviewed by editorial team.