As a spousal beneficiary, Bob’s wife could take a portion of the 401(k) as a lump sum. While this withdrawal would be penalty-free, it’s taxed as regular income, which could result in a hefty bill. She could also roll the inherited 401(k) over into her own 401(k) or IRA, if she has one.She’s 55, so she could live another 40 years. While she would receive some Social Security benefits in retirement, the couple has to consider whether that, combined with 401(k) withdrawals, would be enough to cover expenses a ...