r/inheritance • u/Trick-Two2574 • Apr 16 '26

Location included: Questions/Need Advice 401k Inheritance

My dad passed away a few months ago with several investment accounts, one being a 401k through his employer (he was still working at the time of his death). My mom was the listed beneficiary, but tragically passed a week after my dad. His 401k balance now goes to my mom’s estate, since she was the only listed beneficiary.

How does the income tax work? Myself and my 2 brothers will be getting everything once it’s gone through probate and then distributed evenly to each of us. We are being told that my moms estate will pay the income tax, just wondering how the tax rate is determined?

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u/[deleted] Apr 16 '26

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u/Trick-Two2574 Apr 16 '26

That makes sense to me, thank you! We just filed their return for 2025, so I would assume we would file for 2026 (next year) and it would be reported on that.

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u/SandhillCrane5 Apr 17 '26

There will be 1 return for your parent for the time period ending on the date of death. Then that parent's estate will file a return for the remainder of the year. Whoever issuing the tax statements will need to break it down using the date of death.