401K and other taxed after death?

What is the name of your state? MA


I got sent over here from Wills, etc. forums. Can anyone help?

I am trying to figure out if /how 401K's, IRA's and Profit Sharing plans get taxed after death. Is the money treated differently due to the pre-tax nature of the funds? I am talking about passing about $300K from one spouse to another, where the receiving spouse is the primary (sole) beneficiary on all accounts.

Thoughts?

Thanks,
S

Taxable if and as it would have been taxable to the decedent, but there are no penalties if the amounts are inherited.

And again, only taxable as withdrawn.

Snipes

just to add another thought, when the beneficiary is a spouse, i beleive that spouse can "roll it over" to their IRA so that it can continue to grow tax deferred. as snipes said, if withdrawn, then it is taxed as ordinary income. consult with a tax professional on roll over options for the surviving spouse for each type of plan.

Thanks for the input.

-Scott