Profit Sharing

[jpc1258]

What is the name of your state? California
My wife recently passed away, and I am trying to get her employer to release her profit sharing funds. Can they be withdrawn without penalty by the surviving spouse? And can the be withdrawn claiming exempt from federal taxes? And do I have a right to request all account details, such as transaction and deposits?

Thank You
JohnWhat is the name of your state?

 

[Beth3]

My condolences on the loss of your wife.

Can they be withdrawn without penalty by the surviving spouse? If you're under age 59-1/2, a 10% early withdrawal penalty will likely apply.

And can the be withdrawn claiming exempt from federal taxes? No. Any monies in your wife's 401(k) Plan are taxable income during the year they are withdrawn. The only way around this is to roll-over the funds into another tax-deferred plan, such as an IRA.

And do I have a right to request all account details, such as transaction and deposits? Naturally, you can request anything. You need to speak to the Plan Investment Advisor regarding obtaining an "accounting" of her account. What you're asking for shouldn't be a problem.

You may want to consider speaking with a tax/investment advisor before you withdraw the funds if you'd like to find some ways to minimize any withdrawal penalties and taxes.