beavismom95[at]hotmail.com wrote:

- quote -

401K contributions are generally made with pre-tax dollars,
so she probably never paid tax on these funds. As
beneficiary of the account, your tax liability is the same
as it would have been for your mother. There is no "step up"
at death for a qualified retirement plan assets.

Sounds like you did it correctly, your brother did not.

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"beavismom95[at]hotmail.com" <beavismom95[at]hotmail.com> wrote:

- quote -

You are correct.

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

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<beavismom95[at]hotmail.com> wrote:

- quote -

It's fully taxable unless your mother made after-tax
contributions. The 1099-R that was issued to you would show
this.

Your brother will be hearing from the IRS when they get
around to the 2004 underreporter program.

--
Phil Marti
Clarksburg, MD

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<beavismom95[at]hotmail.com> wrote

- quote -

Generally, contributions to a 401K plan are with "pre-tax"
dollars, and Plan earnings are tax defered, making every
dollar withdrawn taxable.

In addition, there is no step-up in basis on IRA, 401K and
similar type assets.

- quote -

Unfortunately, you are correct, and your brother will be
getting a notice from the IRS in a few months.

Tell him it's a "pay the Uncle now, or pay them later" kind
of thing.

--
Paul A. Thomas, CPA
Athens, Georgia

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My Mom passed away in 2004 and we received the balance of
her Salaried Savings Plan. Is this amount fully taxable
income or is there an exemption for the amount she put in
the plan? We found conflicting information, but I claimed
it as income on my 2004 taxes, my brother did not. So, who
is correct here, because I certainly wouldn't mind having
that money back. Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >