401k
Hi, before mailing my check to the IRS, I just wanted to get another expert to support what I am being told to do from my tax person. My brother passed away in the state of TX in January 2015. He had no kids and was divorced. He had a 401k through Vanguard that, as Administrator, I distributed to an Estate account at the bank. Vanguard withheld 10% (63k of the value of 630k). After paying bills etc. I recently distributed equal amounts of the remainder to myself and my two siblings…~181k apiece. What I am sending to the IRS is a check in the amount of ~66k (36% or so) for my personal return (actually lower than 66k since the total was reduced for educational expenses etc.) Anyway, if anyone is able to confirm this is somewhat appropriate, it would be appreciated.
Permalink Submitted by Alan - IRA critic on Tue, 2016-04-12 20:51