I'm inheriting a 401K account from a deceased family member. I'm the beneficiary on the account and I'm younger than the 59 years old required for penalty free withdrawals.
The account has about $100K in it and I'm planning on cashing it out.
I'm aware that I can roll it over into an IRA to avoid the taxes and penalties. However I'm planning on cashing it out.
I would like to get a better understanding of the tax implications (federal + state (Georgia)) and penalties associated with cashing out a 401K account with this amount of money.
Also are there any inheritance taxes that will be associated with inheriting this account?
If I decide to gift this money to some family members are there any additional tax implications for this?
Thanks
