Question and background: How much income tax will I have to pay on an inherited 401(k)? It was $1,790,000. I got it from my dad when he passed. Answer: My condolences in the passing of your father. In answering, I’ll assume that you are the sole “designated” primary beneficiary and that all your father’s contributions to the 401(k) were pre-tax.
Question: Can I Utilize the 1035 Exchange Provision for an Annuity I Inherited? Answer: Yes, you can...provided this is a non-qualified inherited annuity and not an annuity in an inherited IRA. An annuity in an inherited IRA would just be liquidated with the proceeds directly transferred to another inherited IRA.
Question: I am on Social Security benefits. Will I be taxed on this income? Answer: The federal taxability of your Social Security is based on a concept called provisional income and it's different than the standard federal income tax brackets.
Question and background: Does every average person have to pay Social Security taxes and file an income tax return? I know someone who is in their seventies and has not paid Social Security tax since retired or filed a tax return. They have no other income. Is it mandatory that they file, and would they have to do that now?
Tax season officially opens today, so you can expect the scammers to step-up their game. A lot of these interactions contain dead giveaways, but the slimeballs are getting more sophisticated...and it's obviously "working" given the growth of this problem. You can protect yourself by being aware that the IRS will never: