"aristotle" <aristotle65[at]hotmail.com> wrote:

- quote -

Yes, when he/she takes distributions.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"aristotle" <aristotle65[at]hotmail.com> wrote:

- quote -

A surviving spouse (or any other plan beneficiary for that
matter) will owe tax on the plan balance at the time that it
is distributed. Qualified plans and IRA's are treated as
"income in respect of a decedent" or IRD. Any items of
IRD do not get a step up in basis at death like other assets
do, so the balance is taxed in the same manner as if the
decedent had received it while he was alive.

Brian Bivona

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aristotle65[at]hotmail.com
(aristotle) writes:

- quote -

No one's subject to taxes until distributions are made. To the extent that
such distributions contain taxable income, the recipient is liable for them.
See Publication 575.

Phil Marti
Topeka, KS

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aristotle wrote:

- quote -

The surviving spouse would pay income tax on any "distribution"
(not the balance) from the plan in the same manner that the
distribution would have been taxed to the decedent except that
there would not be any early withdrawal penalty (10% add'l tax)
to the survivor. A surviving spouse can avoid paying any income
tax by rolling over the plan proceeds rather than keeping the
distribution.

--

Alan
http://taxtopics.net

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aristotle65[at]hotmail.com (aristotle) wrote:

- quote -

Yes, as they are withdrawn by the survivor/beneficiary.

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"aristotle" <aristotle65[at]hotmail.com> wrote:

- quote -

The beneficiary of the plan is subject to income taxes to
the same extent that the decedent would have been.

A surviving spouse beneficiary can postpone the taxes by
rolling the funds into her IRA.

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- quote -

yes

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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aristotle65[at]hotmail.com (aristotle) wrote:

- quote -

If the plan is a qualifed plan under section 401 (which a
"defined contribution pension plan" should be), then the
proceeds are taxable income when received, as provided in
section 402.

There would be no federal estate tax because of the federal
estate tax marital deduction, unless the surviving spouse is
not a citizen of the United States, in which case you had
better find a good lawyer, and soon.

*Dan Evans
*Author of the Tax Protester FAQ
*http://evans-legal.com/dan/tpfaq.html

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When a married party with a "defined contribution pension
plan" dies, is the surviving spouse subject to taxes on the
balance of funds in the plan.

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