inherited 401K, inherited sale of land,
I inherited my late husband’s 401K this year which I rolled over to an IRA. I also inherited his share of money received for land that was sold this year. This will be last year as “filing jointly”. I live in Texas; what is the percentage of tax for the sale of land, and since I am retired, do you advise that I put the maximum allowable amount in my IRA for tax purposes? Thank you for your response.[/b]
Permalink Submitted by Alan Spross on Sat, 2008-12-13 23:42
Sorry to hear of your loss.
You can only contribute to an IRA if you have earned income in 2008 from salary, alimony, or self employment. However, if your husband had earned income this year prior to his death, please advise, as you might qualify to use his income for a contribution.
Was the land investment property and owned by both of you as community property? Did the sale close after his death? Whatever the gain turns out to be, the rate is 15% if the land was owned over one year prior to sale. But if you joint income bracket is not over 15%, the rate would be -0-. So further details are needed.