clackey <clackey3[at]bellsouth.net> wrote:

- quote -

If you were born before January 2 1936 you may qualify for
lump-sum distribution at favoired tax rates if you take the
entire 401k out.

- quote -

Depends on how you stated your beneficiaries and contingent
beneficiaries and the law of your state for you and your
spouse dying close to each other.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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clackey <clackey3[at]bellsouth.net> wrote:

- quote -

If the wife is the named beneficiary, the 401k is
distributed to the "contingent beneficiaries". If there are
none named for the account, then the terms of the will
prevail.

- quote -

If the wife is the named beneficiary of the account, that
trumps anything you say in the will. The wife is not
REQUIRED to form such a trust.

- quote -

Only if the named beneficiary pre-deceases you or dies
within a stated period after your death - and there are no
contingent beneficiaries named. Any revocable trust becomes
irrevocable at death.

- quote -

You have some planning work to do. Talk to your estate
planner about this. The estate can be named as contingent
beneficiary, and future distributions can then be determined
by terms of your will.

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clackey <clackey3[at]bellsouth.net> wrote:

- quote -

Naming wife primary beneficiary of the 401k, with secondary
beneficiary being the 4 children equally, should do this.
The tax rate would be the recipient's tax rate at the time.

-HW "Skip" Weldon
Columbia, SC

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clackey <clackey3[at]bellsouth.net> writes:

- quote -

Name the children as contingent beneficiaries. Your 401(k)
administrator should be able to help you with the wording.
(The beneficiary designation form for mine convers this in
instructions and examples.)

Phil Marti
Topeka, KS

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My 401K is large enough that a lump sum distribution would
get most of it taxed at the highest tax rate. I want to
avoid that in the following scenario:

I have 4 adult children.

If both wife and I go at the same time, what is the
disposition of the 401K?

My will has all things move into a revocable Trust, and
spouse is the Trustee. Wife has a similar Will but no
401k/IRA. Any thing that does not go into the trust, spouse
gets.

Spouse is the beneficiary of the 401K.

Would the entire 401K move to my Revocable Trust and be
taxed on that amount?

....or is there a way to get 1/4 of the 401K to go to each of
the 4 kids disbursed straight from the 401K administrator,
thus causing the tax rate to be only 15% federal?

Carl

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