topic 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? in Retirement tax questions

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?

Dixie-Gal — Tue, 30 Mar 2021 00:39:40 GMT

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

Re: Inherited money from deceased father's qualified retirement plan and did a direct rollover (l...

DavidD66 — Tue, 30 Mar 2021 01:05:53 GMT

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

Re: 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?

dmertz — Tue, 30 Mar 2021 01:34:42 GMT

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.