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New Member
posted Mar 29, 2021 5:39:40 PM

Inherited money from deceased father's qualified retirement plan and did a direct rollover (lump sum) to my employer's profit sharing plan 401(k). Do I pay taxes on it?

I received a 1099R with distribution Code 4G. My father was receiving distributions from plan when he died.

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2 Replies
Expert Alumni
Mar 29, 2021 6:05:53 PM

Can you clarify what type of qualified retirement plan you inherited?  The options for beneficiaries vary depending on the type.

Level 15
Mar 29, 2021 6:33:10 PM

You are not permitted to have rolled this distribution over to your own 401(k) account.  Doing so likely constitutes a failed rollover, a taxable distribution from your father's 401(k) and and an excess contribution to your own 401(k).  The only permissible rollover was a direct rollover to an inherited traditional or Roth IRA for your benefit, but that apparently is not what happened.