Reported about 20 hours ago
A 70-year-old retiree with $1 million in his 401(k) contemplates giving his son a $200,000 early inheritance to assist with home buying. However, the decision is complicated by potential tax implications and future financial security. Withdrawals from a 401(k) are taxed as income, which could elevate his tax bracket and impact benefits like Social Security and Medicare. Experts suggest planning the withdrawal strategically or consulting a financial advisor to mitigate the financial burden and ensure both father and son benefit from the arrangement.
Source: YAHOO