I inherited a 401(k) but didn’t know it. What’s next?
Today 9:30 PM
Q. My husband passed away in 2018, I inherited his 401(k) plan but I had no idea it existed until my son went through some paperwork. I had it put into my name and I would like to cash it out this year. What do I need to know? Widow
When a surviving spouse inherits an IRA or 401(k) plan from their deceased spouse, they can make the account their own and then treat it as if it was always theirs, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
I inherited a 401(k) but didn’t know it. What’s next?
Updated May 10, 2021;
Q. My husband passed away in 2018, I inherited his 401(k) plan but I had no idea it existed until my son went through some paperwork. I had it put into my name and I would like to cash it out this year. What do I need to know? Widow
When a surviving spouse inherits an IRA or 401(k) plan from their deceased spouse, they can make the account their own and then treat it as if it was always theirs, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
How much can I save in my small biz retirement plan?
Updated 9:40 AM; Working hard
A. It’s great to see you want to set money aside for the future.
A SEP-IRA is a pension plan that self-employed people and small businesses can open for themselves and their employees.
If the business owner wants to take a tax deduction for their own SEP contribution, then the business owner must contribute to all eligible employees SEP accounts, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
The contributions you make to each employee’s SEP-IRA each year cannot exceed the lesser of: 25% of compensation, or $58,000 for 2021 ($57,000 for 2020), he said.
How does the exit tax work if you are getting divorced?
Updated 5:30 AM;
Q. How does the exit tax work if you are getting divorced? I will temporarily be leaving the state to live with my parents. I will travel back and forth after the sale of the house, living in both New Jersey and another state. My ex will stay in New Jersey. Moving around
A. The so-called exit tax isn’t really an extra tax, but it’s an estimated tax payment based on the sale of a home.
You say you will be traveling back and forth between New Jersey and another state, living in both states.
Will having homes in N.J. and Florida be a smart move? NJ.com 1 hr ago Karin Price Mueller, nj.com
Q. I’m a New Jersey homeowner considering selling the house and moving into an apartment. We don’t want the maintenance anymore. The profit from the home sale will allow us to purchase a condo in Florida, which will not be used as a rental. Our primary residence would continue to be in New Jersey. I’m still working and not planning to retire in the near future but my spouse is retired. We’re not sure if this is financially smart and unsure of tax implications.