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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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My sister passed away March 10th 2014 she left a 457 pension

Customer Question

My sister passed away March 10th 2014 she left a 457 pension plan to my to my other sister as sole beneficiary but she had a living trust and stated that my sister was to give me 50% of the pension plan i would like to get my 50% but my sister's unsure of how to withdraw without her having any tax problems is there a way of her releasing half of the pension plan to me and I would be responsible for any tax issues she has not taking the money out of the 457 plan and hasn't made any changes since my sister died we need help
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from Just Answer. PDtax here. I'll assist.

Expert:  PDtax replied 1 year ago.

There will be tax consequences in the inherited account, as 457 deferred compensation plans are tax advantaged.

Inheriting accumulated contributions and earnings that were never taxed means there will be income tax consequences for your sister. If she chooses to allocate 50% of this inherited amount, since some time has passed, it is likely she has already taken title to the account. That limits your distribution options.

You didn't say how she took the funds. I need to know how the assets are being held before I can advise re: how to get you your $$.