Coronavirus (COVID-19) News and Resources
Coronavirus (COVID-19) Webcasts
Subscribe to Free Daily Newsletters
Post a Job

Featured Jobs

ESOP Valuation Writer
Unique ESOP Valuation Provider
(Telecommute)
Enrolled Actuary
Loren D. Stark Company logo
Loren D. Stark Company
(Telecommute)

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn
Twitter
Facebook

<< Previous news item   |   Next news item >>



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."

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2020 BenefitsLink.com, Inc.