topic Am I supposed to file anything for receiving life insurance, IRA and 401k payout from my deceased mother? Federal taxes were withheld. What about for Gofund me money? in Retirement tax questions

Am I supposed to file anything for receiving life insurance, IRA and 401k payout from my deceased mother? Federal taxes were withheld. What about for Gofund me money?

blstdtheartist86 — Tue, 10 Feb 2026 09:55:16 GMT

Re: Am I supposed to file anything for receiving life insurance, IRA and 401k payout from my deceased mother? Federal taxes were withheld. What about for Gofund me money?

dmertz — Thu, 18 Jan 2024 13:01:55 GMT

Near January 31 you'll receive Forms 1099-R for these distributions that must be reported on your tax return by entering these forms into TurboTax.

Regarding GoFundMe:

https://support.gofundme.com/hc/en-us/articles/204295498-Taxes-for-Organizers

Re: Am I supposed to file anything for receiving life insurance, IRA and 401k payout from my dece...

Vanessa A — Thu, 18 Jan 2024 14:40:59 GMT

Life insurance generally is not taxable so it is not something you need to report.

You will receive a 1099-R from the funding company. If you took a payout from the IRA and 401K and did not roll it over, that income may or may not be taxable income but you will need to report it on your return. Even if you rolled it over, you will need to include the 1099-R to report that you rolled it over. TurboTax will ask you several questions to determine the taxability of the distributions from the retirement plans.

The GoFundme money may or may not be taxable. It depends on why you received it. If the money came from "detached and disinterested generosity, and without the contributors receiving or expecting to receive anything in return" So, if you did a GoFundMe to cover expenses for your mothers funeral and random people contributed to the GoFundMe, it is not taxable and not included on your return.

If the GoFundMe was for something else and related to business or a service you performed, then it would be taxable income and included in your income.

If you received more than $600 you will likely receive a 1099-K from GoFundMe. If the income was for a reason that would be taxable, you will need to include this in your income. If it was not for taxable income then you will still need to enter the 1099-K but then you will make an adjustment to your income and back it out. To do this in TurboTax you will take the following steps:

Click federal wages and income
Show more next to Other Common Income
Start next to 1099-K
Select Other for what type of income
Enter the info from your 1099-K
Select "This amount in box 1a is too high or includes some personal transactions"
Enter the amount that should not be included
Hit continue

This will allow you to report the income but still not be taxed on anything you should not be taxed on.

Re: Am I supposed to file anything for receiving life insurance, IRA and 401k payout from my deceased mother? Federal taxes were withheld. What about for Gofund me money?

Opus 17 — Thu, 18 Jan 2024 14:49:21 GMT

Life insurance is not taxable.

If you cashed out an IRA or 401k, you will receive a 1099-R from the custodian(s). The forms should be mailed by January 31. You might want to call and make sure the custodian has your correct address. The withdrawn funds are taxable.

What did you do for GoFundMe? If you asked for free money and made no promises, the money is a gift and gifts are not taxable. If you promised to do something in return (provide goods or services), then you are self-employed and you must report the income as taxable self-employment income on schedule C. You can deduct ordinary and necessary business expenses, and you pay income tax and self-employment tax on the net profit.