How much will I have to pay in taxes on an inherited 401k?

I inherited my diseased father's 401k. It was $1,790,000. 

401(k), Taxes
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July 2016


Thank you for your question and sharing some information. I am sorry for your loss. Short answer, it depends. It will depend on the age your father passed away and if he had started taking RMD's. The 401(k) plan could have specific rules about how and when you must take the money out versus and inherited IRA perhaps. The total value of your father's estate will also have to be considered as there could be state or federal estate taxes due.

I would encourage you to consult with a CFP professional, Estate planning attorney, and a tax professional. Working with a team like this will educate you and give you a lot of information so you can make the right decisions moving forward. The size of your father's 401(k) is somewhat more than most tend to be, getting some solid advice will be important.

If you have any further questions please feel free to contact me.

Best Regards,

Derek Notman

February 2016
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