Any one can tell me what kind of Tax need to be pay for my 401K right after I die?

Question

I like to know any Tax need to pay for my 401K left over money right after I die, also can I put 401K money in my living trust?
If some one sue me, after I die, they can get my 401K money?
Thanks

How about I get sues before I am 65 years old, when I am become 66 years, I start plan to withdraw my 401K money, and that time, the suer can touch my money or not?

Answer 1

If you die then your beneficiary gets your 401k balance and it's considered taxable income to them. Depending on their relationship to you they may be able to roll it over and avoid taxation altogether. You can't put your 401k in yoru living trust but you can make the trust your beneficiary which serves the same purpose.

If someone sues you after you die they do not get your 401k money unless you don't have a named beneficiary of the account. In that event the money would go to your estate and then it can be attached. Of course they aren't suing you...they are suing your estate.

That's why the 401k is a great savings vehicle. It can't get attached and you can't be forced to liquidate. And, if you die then it goes to your heirs and STILL can't get attached.

Now, if you've done your finances right and your estate will owe no taxes and you know you're going to die. Take a loan from your 401k just before-hand. When it comes time to issue the 1099-R and tax someone, they won't have withheld anything, no estate to apply the 10% penalty to and the heirs get the money as a gift...there's a specific way to do it and you'll have to do your own research but it's possible.


No, they still can't attach your 401k payments...that's why OJ Simpson still lives h igh on the hog off his NFL pension even though he owes the Goldman family something like 30 million dollars. pension monies are protected.

Answer 2

I believe when you die you cannot be sued. If your assest are transferred to relatives they cannot be touched. If you die, I can't sue your kids to get $. The main guy in the Enron scandal died and all charges were dropped. I believe that lawsuits work the same way. You can't recover from a dead guy.

Your family however may have to pay some taxes on your $.

Answer 3

A 401(k) is part of your estate. Like other monies, it is subject to estate taxes if you have a large enough estate. You can leave an unlimited amount of money, without tax, to your spouse.

If you have some sort of debt owed at death, your creditor could make a claim on the estate. I'm not sure if it is protected or not.