katdau71 Posted November 10, 2009 Report Share Posted November 10, 2009 Am i correct - The basis of inherited investments and 401k is their value on the day of inheritance? Please help me here. Thank you. Quote Link to comment Share on other sites More sharing options...
OldJack Posted November 10, 2009 Report Share Posted November 10, 2009 The 401k has the same basis as was the deceased and is taxable to the beneficiary the same as would have been the deceased. Quote Link to comment Share on other sites More sharing options...
jainen Posted November 16, 2009 Report Share Posted November 16, 2009 >>basis of inherited investments and 401k is their value on the day of inheritance?<< Technically the correct answer is yes, but that is very misleading. "Inherited" can mean a variety of things. If the asset was already jointly owned the basis adjustment might only apply to the decedent's share. Community property has special rules, and anything goes if the heirs decide to mix & match. Basis works somewhat differently in a 401(k)--withdrawals, including earnings after date of death, are considered to be income in respect of the decedent. Quote Link to comment Share on other sites More sharing options...
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