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My brother died, I'm sole beneficiary for a retirement account like 401k. Can I share funds to my siblings w/o penalty?

Don't want to distribute if it means taxes & penalties.

Apr 09, 2018 by Dann in  |  Flag
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The short answer is no, you won't be able to share the funds without incurring taxes and penalties. Since you are the sole beneficiary you are the only person to which the funds in the account can be distributed without taxes and penalties.

Comment   |  Flag   |  May 17, 2018

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Jean Fullerton Level 1

You will owe tax, at your income tax rate, when you withdraw money from the account. Contact the company where your bother worked, or the custodian that holds the 401k to see what your options and requirements are for the account.

Comment   |  Flag   |  Jul 30, 2018

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