Q: My mom died 6yrs ago. Was just informed by her employer I am beneficiary to her 401K. What are tax/fees for cash payout?
I am the only child (sole beneficiary). My concern is that I would like to have access to these funds now, but would like to know most economical way of doing so, if possible.
A: This question may be better suited to be answered by a certified financial planner rather than an attorney, but in general, lump sums received are taxable at your income tax level. The plan administrator for the 401K will have more information available to you regarding payout options. Some plans only offer lump sum payouts while others payout over a designated number of years. It is difficult to give tax advice without knowing more about your specific financial situation. Seek out further assistance from a certified financial planner.
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