Estate 401k Distribution
The Estate rec’d the payout from the deceased 401k minus the 20% deducted for Federal Taxes. My question is when I pay the Georgia State Tax on the inheritance, do I pay tax on the original $125k or on the amount the Estate received of approx. $100k?
Permalink Submitted by Alan - IRA critic on Tue, 2019-06-04 18:13
GA state income tax would be based on the 125k distributed from the 401k, not reduced by the federal withholding. By the way, the 20% should not have been withheld because this distribution is not eligible for rollover.