🔺 r/personalfinanceuanon236615·64 days ago
What do I do with inherited 401K plan?
My partner recently passed before we had a chance to marry. Imagine my surprise when his HR called me to say left me as his beneficiary of his workplace 401k plan. It has accumulated to about 50k when I checked last checked a few months ago. California does not recognize common law marriage so the only option I have is to pull it out in increments over 10 years and will need to pay taxes when I withdraw. No kids, no debt, no car payments, no mortgage and annual salary is 80k in the Bay Area. Moved back home to save some money and figure out my next move. Trying to budget properly so I don’t get completely wrecked in taxes. What do I with this money? It’s not exactly enough for a down on a home, but maybe I can invest? Is it redundant to pay taxes on the withdrawn money, just to put it back into my 401k? We always talked about going to Maldives/Italy/Japan for our honeymoon so maybe using that money on a trip? Any insight and/or suggestions are appreciated! submitted by /u/anon236615 to r/personalfinance [link] [comments]