What will happen to the taxes on my 401k if I die?

Answer by  Chaneygirl (1755)

If you have beneficiaries named, the 401K income will be taxed on their income tax returns as they receive the money. If there is no beneficiary, it goes to your estate which then pays the taxes.

Answer by  slkunz2003yahoocom (836)

When you signed up for your 401K plan with your employer, they had you designate a beneficiary. This person would be the recipient of the 401K unless you have a will in place that overrides that decision. The will and beneficiary information should match for ease of disbursement.

Answer by  tamarawilhite (17883)

If your 401K is transferred to your spouse upon your death, they owe no taxes until they take out retirement distributions. If it is inherited by another relative, they will pay income taxes on the amount when it is cashed out.