Question

Is 401K taxable when inherited?

Forum|Forum|4 years ago
March 22, 2022
1 reply
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I am a beneficiary of my step fathers 401K. All the money is pre-tax so I know there will be a 20% federal tax withholding.

He lived in Ohio and passed away in Ohio. I also live in Ohio. There is a choice on the form to deduct state taxes. My understanding is in Ohio there is no state tax on 401K inheritance. Is my understanding correct?

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V

Vanessa A

Yes, you would want to have state taxes withheld on the 401K distribution as the state of Ohio does tax retirement benefits that are taxable by the federal government.

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S

shawnMsrmAuthor

Thank you for the reply.

Just to confirm, I am a beneficiary on this account. There is not retirement, but I am receiving these funds as a beneficiary for someone who has passed away.