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Yahne Yvonne Miorini

Yahne Miorini’s Answers

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  • How should i leave a 401k to my parents who lives out of united states if i die in Falls Church, VA

    I am alone in USA. I am single, and I don't have my family members in United States.

    Yahne’s Answer

    The citizenship or location of the beneficiaries of a 401(k) is not really a problem. The general rule is that at your death, your parents will have the option to take out or stretch the withdrawals over their own lifetimes if they transfer the 401(k) into an inherited IRA. However, you need to check your 401(k) plan because it needs to allow the transfer of a 401(k) into an inherited IRA. Not all of the plans allow it. Depending on where your parents live and whether there is a tax treaty between the U.S. and that country, the general rule is that they will have to file a U.S. income tax return for the income received from the IRA. If you believe that is going to be too complicated for them, then you may consider selecting your estate as the beneficiary of your 401(k) and appointing an executor for your estate. It is more costly, so I would only do it if your parents cannot handle the IRA-rollover option.

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