An inherited 401(k) can be a lasting legacy, but the windfall needs to be handled carefully to maximize the inheritance and minimize taxes. Your relationship to the deceased and the 401(k) plan's own rules affect your options for managing the money. It's critical to understand the rules, because "if you make a mistake, it's hard to reverse," says Rob Williams, vice president of financial planning for the Schwab Center for Financial Research. Step carefully, and you can avoid pitfalls of inheriting a 401(k).

Here are six key questions 401(k) heirs should ask.

What Are the 401(k) Plan Rules?

Getty Images

A 401(k) heir's first step: Contact the plan sponsor or company benefits department to sort out what