The Surprising Tax Bill on Your 401k Inheritance

When you inherit a 401k from a parent or spouse, the tax rules changed dramatically with the SECURE Act. In this episode, Lucas and Luna break down the new ten-year distribution rule, the 'stretch IRA' that no longer exists, and the shocking tax bracket surprises that await beneficiaries who don't plan ahead. They walk through a concrete example: a $400,000 inherited 401k that could trigger a $90,000 tax bill if cashed out in a lump sum, or a manageable $20,000 if spread over the decade. They also discuss the exception for surviving spouses and the pitfalls for minors and disabled beneficiaries. Practical advice on when to consider Roth conversions before you pass, and why you should update your beneficiary forms today. #Inherited401k #SECUREAct #StretchIRA #RetirementPlanning #Beneficiary #RMD #TaxPlanning #RothConversion #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #401k #IRA #EstatePlanning #TaxBracket #WealthTransfer #FinancialLiteracy Keep every episode free: buymeacoffee.com/fexingo