Tax implications to US non-residents who are beneficiaries of 401k
An estate administrator asks: If the parents of a deceased friend (non-U.S. residents) are beneficiaries of a traditional 401k account, do they need to pay taxes to the U.S. federal and state governments? This article outlines relevant tax points, emphasizing the need to consider specific facts and professional advice.
I am the administrator of the estate of my deceased friend. The beneficiaries are my friend's parents who are not US residents and do not reside in US. The estate is primarily a tax-deferred (traditional) 401k account. Will the beneficiaries have to pay any taxes to the US federal and state government?