My spouse died in 2022 and his deferred compensation was disbursed to me in a lump sum. I believe I get taxed as if it's ordinary income. What other options are allowed?

Can I defer it or pass it to our children (minors)?

posted

It's your income, not your children's income, and must be reported on your tax return. Enter into TurboTax the form that reports this income to you and answer any questions that follow.

If you received it within the last 60 days you might be about to roll it over to and continue to defer this income, but it seems likely that you have missed that deadline.