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    Cathy 115's Avatar
    Cathy 115 Posts: 1, Reputation: 1
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    #1

    Jun 15, 2008, 02:32 PM
    Inheriting a 401K
    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
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jun 15, 2008, 07:22 PM
    Moved from investment
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #3

    Jun 15, 2008, 10:58 PM
    Quote 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
    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.

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