|
Posted by Chris Cowles on February 1, 2008, 9:50 pm
<photoguy_222@yahoo.com wrote in message
> 401k plans work by deducting your paychecks. As I
> understand, you can't deposit a lump sum into a 401K.
> IRAs allow you to put in lump sums, but you are limited
> to just a few thousand a year.
Contact a tax or estate attorney before doing anything. There may be
ways for your mom to distribute the inheritance that minimizes the
overall tax paid by all parties. It may be worthwhile for her to dole
it out slowly and pay tax on what she holds. That might be less tax
than what the recipients will pay.
If a 401k is your desired destination, consider putting the cash in
an
accessible account. Contribute the maximum permitted to the 401k.
Replace the reduced paycheck cash flow with that from the gift.
Indirectly, you'll be putting it in the 401k.
I do not mean to suggest that a 401k is or is not an appropriate
strategy. I'm simply proposing a way to maximize your contributions,
should you choose to. If you do, and if the gift exceeds to the
maximum allowed annual contributions, you'll still need to decide
what
to do with the rest.
I wish I had your tax problem.
--
Chris Cowles
Gainesville, FL
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap