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401k death benefits

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jnovak001

Junior Member
What is the name of your state? Michigan

My mother-in-law passed away on june 27th. Here three children are trying to settle her 401k. What is the best and least tax way to handle the 401k?
 


Snipes5

Senior Member
There should have been a beneficiary on file.

The servicing financial institution will assist the beneficiary in deciding on disbursement.

For best tax benefit, take periodic payments.

If there is only one beneficiary and three of you want to share the proceeds, the beneficiary will have to pay all the taxes, and gift to the others.

If there are three listed beneficiaries, then each will receive their portion from the financial institution and will be required to pay tax on the amount disbursed.

Snipes
 

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