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    ROCKO1's Avatar
    ROCKO1 Posts: 1, Reputation: 1
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    #1

    Aug 2, 2012, 01:38 PM
    401k beneficiary
    What federal tax and penalties applies to my wife's 401k after her death? Am I obligated to roll it over into mine?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 2, 2012, 02:28 PM
    You are NOT obligated to roll the 401K into your 401K or into a rollover IRA.

    You CAN have the money distributed, but you will pay normal income taxes (federal and sate) without the 10% Early Withdrawal Penalty.

    However, doing the rollover is probably your best option tax-wise.
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