I and my siblings are in a situation very similar to this thread. My brother died with a 401K but no named beneficiaries and no will. So we have been moving through probate. We were dealing with a financial services firm who dragged their feet, including denying the account existed. Now all of a sudden they informed the executor that the 401K was lump summed out, 10% withheld (presumably to the EIN) and “the check for the balance is in the mail”. Since for tax reasons we would like to shift the tax burden to the three beneficiaries via issuing K-1s, we were wondering if now we have to stretch this over two years, the bulk distributed now and the remaining 10% in the following year after the 1041 is filed and the withholding recovered. Also, even though the 401K was lump summed out, with the check going to the executor’s estate account, can distribution of the funds be deferred so that the taxable event to the beneficiaries occurs in 2024 rather than 2023?
