Inherited moms 401k/best way to avoid taxes?

[valet]

Got my moms retirement money which is 180k. It's just sitting in yhe bank. I know if I don't invest it in 60 days it gets taxed right? When I look at IRA'S its limited on the amount you can contribute. Now I do have a Janis fund which my pops started when I was young. It's only 7k in there now (had to buy cars). Maybe I could dump it in there but I'm not sure if that's smart. Any advice?

 

[South Paw]

Got my moms retirement money which is 180k. It's just sitting in yhe bank. I know if I don't invest it in 60 days it gets taxed right? When I look at IRA'S its limited on the amount you can contribute. Now I do have a Janis fund which my pops started when I was young. It's only 7k in there now (had to buy cars). Maybe I could dump it in there but I'm not sure if that's smart. Any advice?

Isn't the money still in the 401k? Or did it already get distributed?

 

[valet]

Isn't the money still in the 401k? Or did it already get distributed?

Got distributed. They wrote me a check

 

[Panther]

Got distributed. They wrote me a check

Inherited 401(k)s: Your Complete Guide | The Motley Fool

 

[Rawtid]

Found this article:

https://www.forbes.com/sites/kristi...ed-to-take-the-money-and-when-you-should/amp/

 

[South Paw]

Got distributed. They wrote me a check

You didn't have a choice to keep it in their name? There is usually tax rules about being able to keep inherited 401k from family members in that states for 10 years.

Inherited IRA and 401(k) Rules: Don’t Run Afoul

 

[valet]

You didn't have a choice to keep it in their name? There is usually tax rules about being able to keep inherited 401k from family members in that states for 10 years.

Inherited IRA and 401(k) Rules: Don’t Run Afoul

Yeah, the paper work just asked who thr befenciary was and the death certificate. I didn't see that. Unless I misread it. Unfortunately I deposited the check. The financial advisor at my bank is going to try to help me next week. Otherwise I'm screwed with taxes. And a 10% penalty

 

[South Paw]

Yeah, the paper work just asked who thr befenciary was and the death certificate. I didn't see that. Unless I misread it. Unfortunately I deposited the check. The financial advisor at my bank is going to try to help me next week. Otherwise I'm screwed with taxes. And a 10% penalty

hopefully you can do something but you may be stuck. update me how it ends up. I think once check deposited thats how it goes. kinda like when you roll over a 401k same thing.

 

[valet]

hopefully you can do something but you may be stuck. update me how it ends up. I think once check deposited thats how it goes. kinda like when you roll over a 401k same thing.

Ok, I'll find out next friday

 

[beenz]

can this be rolled over into your personal IRA to avoid the taxes?

 

[valet]

can this be rolled over into your personal IRA to avoid the taxes?

I don't think so but not sure.

 

[Hersh]

there's a time limit to lower penalty.. until there is no more penalty.. but not sure when

 

[valet]

Good news. So the white guy at my bank was pressing them on who they wrote the check too. And these idiots finally admitted they wrote it to my pops (I'm a Jr.) He stayed on them and they was dipping and doging until they finally admitted.

So now, I just gotta write a letter and return the money. Thank you Jesus.

Other wise, I would been taxed for close for to 200k for the year

 

[valet]

It felt good being upper middle class for a couple weeks. Seeing that 170k on my savings. Then when they wrote that check, my savings down to 11k (still got money in my checking account but still). Just can't wait till this straighten out. Draw out money every year for the next 10 yrs and put that mug in a ira.

 

[Yapdatfool]

Other wise, I would been taxed for close for to 200k for the year