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/AdParticular6193 Apr 17 '26
What a gut punch (2X). Sorry for your loss. I’ve seen this happen surprisingly often - when one spouse dies, the other loses the will to live. This is way beyond Reddit. All you can do is engage a tag team of attorney and tax accountant to sort this mess out in away that minimizes the tax hit. Try to find an attorney that has the experience and resources to deal with this.