Ask The Experts: Money Matters

By Mike Miles

401(k) beneficiary and taxes

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Q. My husband has a substantial sum in his private company’s 401(k). I am the beneficiary on this account. If he dies and the money goes to me, may I put that money into my Thrift Savings Program, since that money is all pretax?

A. Good question! If it winds up in a 401(k) or IRA solely in your name (not in a beneficiary account), it is eligible to be moved into your TSP account.

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Comments

  1. JAA Says:
    February 22nd, 2013 at 7:11 am

    Please consult with a financial advisor, because of inheritance rules. It is my understanding that if the funds are kept in separate retirement type accounts and something should happen to you then your heirs will have to pay inheritance taxes on your late husband’s funds and less if any inheritance taxes on your retirement funds.

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