K-1 for Estate's 401k income - Able to pass income to Beneficiaries instead of Estate paying taxes?

Dave2021 — Mon, 07 Dec 2020 18:35:15 GMT

I'm the executor of my mom's estate, unfortunately she passed away while the QDRO was being finished up for a 401K for her divorce with $200K. The QDRO dictated the estate would receive the 401K in the event of her death. Her Will did dictate the distribution of the 401K and estate's cash to her adult children. Since the estate's income taxes are higher than the beneficiaries, is it possible to declare the income on a K-1 and allow the beneficiaries to pay the taxes on their individual taxes? or must the estate pay the income on the 401K distribution and then give the beneficiaries the tax-free distribution?

Re: K-1 for Estate's 401k income - Able to pass income to Beneficiaries instead of Estate paying taxes?

Anonymous_ — Mon, 07 Dec 2020 19:19:02 GMT

It is almost always prudent to consult with a local tax professional and/or attorney for matter such as the one outlined in your post so that all of the relevant documents can be reviewed.

Generally, however, an estate can pass through income to beneficiaries unless expressly prohibited by the will.

topic K-1 for Estate's 401k income - Able to pass income to Beneficiaries instead of Estate paying taxes? in Retirement tax questions

K-1 for Estate's 401k income - Able to pass income to Beneficiaries instead of Estate paying taxes?

Re: K-1 for Estate's 401k income - Able to pass income to Beneficiaries instead of Estate paying taxes?