• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

Q&A: Taxes on retirement account withdrawals

January 3, 2022 By Liz Weston

Dear Liz: I would love to give my grandchildren money, but I don’t want to pay the income tax on withdrawals from my IRA or 401(k). Will they get it tax-free when I die?

Answer: Unfortunately, no.

Withdrawals from retirement accounts are generally taxable, whether the person making the withdrawals is the original contributor or an heir. Furthermore, non-spouse beneficiaries of retirement accounts generally must withdraw the money within 10 years.

Related Posts

  • Q&A: Taxes on account withdrawals

    Dear Liz: We have two large expenses that need to be paid this year. I’m in…

  • Beware of hidden taxes in retirement

    Your taxes in retirement may be a lot more complicated than taxes while you're working.…

  • Q&A: Reducing taxes in retirement

    Dear Liz: It appears required minimum distributions will force me to take an additional $3,500…

  • Q&A: Withdrawing after-tax retirement funds

    Dear Liz: I have been contributing to retirement accounts for many years, starting back in…

Filed Under: Q&A, Taxes Tagged With: q&a, retirement withdrawals, Taxes

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in