"Secretagentman" <flat.george[at]gmail.com> wrote:

- quote -

First there are income taxes on those funds because they
hadn't been subject to tax in the past.

Then if your mother's estate is greater than $2,000,000
(assuming she died in 2006 or 2007) the excess will be
subject to estate tax.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Secretagentman wrote:

- quote -

I am sorry for your loss. Is 'recently' this year, 2007? If
so, you may be able to roll it over to your own IRAs. This
story at Smart Money.com gives the details of the new rules;

http://www.smartmoney.com/taxmatters...story=20060821

The rules are specific, be careful, if the money is sent to
you instead of the new IRA custodian, it's deemed a
distribution. The rules surrounding this are complex, and
most mistakes are un-doable, so be sure of what your next
step is.

Yes, it's part of your mother's estate.

JOE

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My dad recently passed away and my sister and I were 10%
each beneficiaries on his 401K while 80% was to go to my
mother. Well she passed a month later and my sister and I
are both to receive 50% of her estate which will include the
80% of the 401K. My question is what will the taxes be on
this type of payout is this part of the estate? I live in NJ
if that matters.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >