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pension inheritance

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L

Looking4

Guest
maryland. mother passed away, with will, leaving all to me. she was 57,still working(36yrs)and had me as beneficiary on her pension. any legal method of avoiding taxes on the pension? everything else in estate is taken care of.
 


ALawyer

Senior Member
There are lots of different kinds of pensions; if it were a defined benefit plan it likely would have been lost with her. With a defined contribution plan the money goes to her beneficiaries. As it was not taxed until now, the Government takes its share and when you take the money out it is taxed. The issue is how long can you hold it in the pension plan untaxed?

I understand that there is legislation pending that could enable you to role over the pension into your own plan, untaxed, until you take it out starting not later than age 70.5.
 
L

Looking4

Guest
thank you for your very prompt reply. now I know what to ask the human resource folks at the company. thanks again.
 

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