The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: 401k withdrawal taxes at retiremtent Date:  7/10/2013  12:27 PM
Author:  irasmilo Number:  118838 of 124773

Then there is also the matter of estate planning on which, after my demise, it will be a lot easier for my heir to access his inheritance if it is in a cash acccount rather than tied up in a 401k or IRA.

You have it backwards. With a proper beneficiary designation, the beneficiary can access the funds in a retirement account immediately upon documenting your death and his/her identity. A cash account may have to pass through probate and estate administration before it can be accessed.

Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us