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Taxation of 401-K in estate

Here's one I thought I knew the answer to, but can't find anywhere.

A dies leaving a 401-K. If the money from that plan isn't distributed until after the first tax year of the estate, when is the money taxed? Is it taxed in the estate as of the date of death, or only when it's taken out of the qualified plan?

Thanks.

Reply to
Stuart Bronstein
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Taxed for Estate Tax purposes on date of death (or alternative valuation date). Taxed for income tax purposes when distributed from plan.

Ira Smilovitz, EA

Reply to
ira smilovitz

Thanks, Ira.

Reply to
Stuart Bronstein

Don't forget the possible IRD tax credit for Estate Taxes paid.

Reply to
Taxed and Spent

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