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#3
02-08-2009, 10:25 PM
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 Re: Tax implications of 401k and IRA to beneficiary - quote - > You should roll your 401K into a rollover IRA account. On your death
Is a 401K really different from an IRA in this regard?> your beneficiaries can put IRA accts. into stretch IRA's and do not > have to take distributions right away. I realize that with an IRA the surviving spouse can roll over the balance into her own IRA, with distribution requirements based on her age. I was sort of assuming the same was true 401K-to-IRA, but can't find anything on this subject in the IRS publications. -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#2
02-05-2009, 07:52 PM
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| Re: Tax implications of 401k and IRA to beneficiary On Feb 4, 1:59*pm, Jane <googlemail2...[at]yahoo.com> wrote: - quote - > If I have a 401k and IRA accounts, all with my husband as primary
Thank you both. This is really happening, but to my husband, not to> beneficiary, what happens when I die? *Does he have to pay tax on all > that money at once or can it remain in a tax deferred account? *The > 401k money is with a former employer (I know bad idea). *The IRA is in > a bank. > This is really happening, so I need to know. > thank you. me. I just couldn't bring myself to say it a few days ago. We're still in shock. -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#1
02-04-2009, 07:27 PM
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| Re: Tax implications of 401k and IRA to beneficiary On Feb 4, 10:59*am, Jane <googlemail2...[at]yahoo.com> wrote: - quote - > If I have a 401k and IRA accounts, all with my husband as primary > beneficiary, what happens when I die? *Does he have to pay tax on all > that money at once or can it remain in a tax deferred account? *The > 401k money is with a former employer (I know bad idea). *The IRA is in > a bank. > This is really happening, so I need to know. > thank you. You should roll your 401K into a rollover IRA account. On your death your beneficiaries can put IRA accts. into stretch IRA's and do not have to take distributions right away. -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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02-04-2009, 06:41 PM
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| Re: Tax implications of 401k and IRA to beneficiary Jane wrote: - quote - > If I have a 401k and IRA accounts, all with my husband as primary
So long as the IRA has him as beneficiary, he does not have to take the> beneficiary, what happens when I die? Does he have to pay tax on all > that money at once or can it remain in a tax deferred account? The > 401k money is with a former employer (I know bad idea). The IRA is in > a bank. withdrawal all at once. In fact, a spouse can choose to roll it into their own name as if it was always theirs. Yes, you should transfer the 401(k) into an IRA, from the other post, they sound as if they are not the best place to leave the money. - quote - > This is really happening, so I need to know.
I am sorry to hear this. I wish you well.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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
02-04-2009, 05:59 PM
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| Tax implications of 401k and IRA to beneficiary If I have a 401k and IRA accounts, all with my husband as primary beneficiary, what happens when I die? Does he have to pay tax on all that money at once or can it remain in a tax deferred account? The 401k money is with a former employer (I know bad idea). The IRA is in a bank. This is really happening, so I need to know. thank you. -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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