I want to withdraw a 401K that was left to my by a non-spouse person. I understand that I DO NOT have to pay a penalty; is this true, and what other taxes/penalties will I have to pay. Thanks

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Originally Posted by Cathy 115

I want to withdraw a 401K that was left to my by a non-spouse person. I understand that I DO NOT have to pay a penalty; is this true, and what other taxes/penalties will I have to pay. Thanks

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In the U.S. there is no tax on inheritances. However, when you withdraw from 401K, it is taxable income for you. However, you are not subject to 10% early withdrawal penalty.