I'm the executor of my mom's estate, unfortunately she passed away while the QDRO was being finished up for a 401K for her divorce with $200K. The QDRO dictated the estate would receive the 401K in the event of her death. Her Will did dictate the distribution of the 401K and estate's cash to her adult children. Since the estate's income taxes are higher than the beneficiaries, is it possible to declare the income on a K-1 and allow the beneficiaries to pay the taxes on their individual taxes? or must the estate pay the income on the 401K distribution and then give the beneficiaries the tax-free distribution?
