We received funds from a relative's 401K after they died. Do we have to file on our taxes?
Yes, if you actually received the money. You would receive a 1099-R from the 401k plan administrator, which will report everything you need in the boxes.
If the funds were transferred to another qualified plan (such as an IRA), then there wouldn't be any taxes due on it (again, unless you withdrew funds)
We received funds from a relative's 401K after they died. Do we have to file on our taxes?
Yes, if you actually received the money. You would receive a 1099-R from the 401k plan administrator, which will report everything you need in the boxes.
If the funds were transferred to another qualified plan (such as an IRA), then there wouldn't be any taxes due on it (again, unless you withdrew funds)
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