Looking for guidance on ESOP distribution to child after death of parent.
Questions:
- Does child need to file tax return if elects to cash out?
- My understanding is there is no penalty for distribution after death however will be taxes as regular income. Is my understanding is correct?
- Does child have the option of opening up own IRA to roll over funds vs cash distribution? Child is 14 yrs old.
Thank you for the support!
