What would the tax consequences be if my father distributes $25,000 to each of his three children from his 401(k) when he passes?

My father is 81 years old and his only income is from Social Security and approximately $2,000 per year as a required minimum distribution from his 401(k). His total income is approximately $30,000.00 annually. When he passes, he wishes to leave each of his three children $25,000.00 each. What are the tax consequences of the three $25,000 distributions?

Social Security, 401(k), Taxes, End of Life
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3 days ago

Assuming your father has passed his beneficiary will recieve their portion of the 401(K) based on his beneficiary form.


The distributions would be taxable to the persons receiving the distributions. In this case the three children.  Each child would be responsible for paying their own taxes on the distributions at their own tax rates.


Best of Luck.


3 days ago
4 days ago