beneficiary assume or inherit?

caliroseMarch 14, 2012

My husband has a 401k rollover into Roth. I have the option of assuming or inheriting the funds. Since taxes haven't been paid on any of these funds, I can't see any benefit of either choice (ie as opposed to setting a value on real estate for tax purposes).

I am over the 59 1/2 and under 70, so am not making a distribution decision right now.

Advice or explanation of the two options?

Thanks!

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sushipup1

You seriously need to consult a tax professional. Someone who will know your specific circumstances. And I thought that taxes were paid on Roth money, unlike the 401K which is pre-tax money.

No, you need a professional to assist you.

    Bookmark   March 14, 2012 at 11:37AM
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jkom51

I second sushipup's suggestion. The Internet is only good for general discussions. They should not be relied upon in specific and critical situations.

As I'm fond of saying, such advice is worth precisely what you paid for it - meaning, zero.

    Bookmark   March 14, 2012 at 6:52PM
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calirose

thanks, I was just trying to get a feel for what to ask a tax atty.
ps: there are different types of roth accts.

    Bookmark   March 14, 2012 at 9:07PM
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jlhug

Sorry, Calirose. All Roths IRAs are funded with money that has already been taxed. Is it possible that the 401K was rolled into a traditional IRA and not a Roth IRA?

I'll third the need to talk to a tax professional. I'd suggest an Enrolled Agent who will probably charge you less than a tax attorney.

    Bookmark   March 15, 2012 at 6:55AM
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