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Offsetting the Income Taxes from an Inherited 401(k)
The Wall Street Journal; subscription may be required Link to more items from this source
July 2, 2014
"The terms of the inherited retirement account specified that the couple had to draw it down in equal installments over five years.... That additional income meant they'd owe at least another $6,500 per year in taxes.... [Their advisor] suggested that each of them contribute the maximum $22,000 to their 401(k)s each year. Those combined tax-deferred contributions of $44,000 would offset the $40,000 in annual income from the inherited 401(k), reducing their tax bill and preventing them from moving into a higher tax bracket."

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