Hi all, this is my first post here, and I was hoping to get a little advice.
My mother just passed on this January. She was divorced and had no will, trust, instructions, executors, anything set up. My brother and I boxed up her things, kept some, most went to charity. Cleaned her mobil home up and sold it. She didn't really have any substantial financial assets to speak of, but yesterday, I got a packet in the mail from Arizona State Retirement systems.
So I have two questions thus far.
1. In order to get a dresser and 5 boxes from Arizona to my home in Texas, it cost me almost 1300.00
Can any of that amount of money be written off on taxes at all, or do I just have to eat it. I didn't move for a job or anything but geesh, that's a lot.
2. The packet I got from Arizona State Retirement Systems, say I am a beneficiary and entitled to 2100 that she must of had taken out of her check before taxes I believe. The letter says I must pay 10% to Federal, and subject to any and all State Taxes. Then it goes on to say I can take a lump sum but I could be subject to tax penalties, I could roll this money over into an INHERITED IRA, or take a partial payment and roll the rest in to an INHERITED IRA. It also says I could waive the Federal Taxes.
I am completely confused as to what I can do and the consequences of doing so. Does this mean if I said I want a check sent to me, they would take out 10% for federal and a small percent to Arizona for State tax, couldn't be Texas, because we don't have state tax in Texas? Or is this similiar to my work 401k, if I called fidelity and said I'd like 2000. in cash, they are going to give me early withdrawl penalties, taxed heavy and then I might see 1000 of that original 2000. Is that the same thing as a death benefit? And if I am going to be taxed heavy to take a lump sum, then could I roll it into my employers 401k, or as a last resort, what is a inherited ira? Says that if I do that I need to let them know before they distribute the funds, so would I call fidelity and say I want to open an ira with funds that were inherited from my mothers retirement. I know 2100, isn't much, I just want to ask questions now and not find out later that I gave up 300-1000 dollars for not asking questions.
Thanks much for any help.
Russ
My mother just passed on this January. She was divorced and had no will, trust, instructions, executors, anything set up. My brother and I boxed up her things, kept some, most went to charity. Cleaned her mobil home up and sold it. She didn't really have any substantial financial assets to speak of, but yesterday, I got a packet in the mail from Arizona State Retirement systems.
So I have two questions thus far.
1. In order to get a dresser and 5 boxes from Arizona to my home in Texas, it cost me almost 1300.00
Can any of that amount of money be written off on taxes at all, or do I just have to eat it. I didn't move for a job or anything but geesh, that's a lot.
2. The packet I got from Arizona State Retirement Systems, say I am a beneficiary and entitled to 2100 that she must of had taken out of her check before taxes I believe. The letter says I must pay 10% to Federal, and subject to any and all State Taxes. Then it goes on to say I can take a lump sum but I could be subject to tax penalties, I could roll this money over into an INHERITED IRA, or take a partial payment and roll the rest in to an INHERITED IRA. It also says I could waive the Federal Taxes.
I am completely confused as to what I can do and the consequences of doing so. Does this mean if I said I want a check sent to me, they would take out 10% for federal and a small percent to Arizona for State tax, couldn't be Texas, because we don't have state tax in Texas? Or is this similiar to my work 401k, if I called fidelity and said I'd like 2000. in cash, they are going to give me early withdrawl penalties, taxed heavy and then I might see 1000 of that original 2000. Is that the same thing as a death benefit? And if I am going to be taxed heavy to take a lump sum, then could I roll it into my employers 401k, or as a last resort, what is a inherited ira? Says that if I do that I need to let them know before they distribute the funds, so would I call fidelity and say I want to open an ira with funds that were inherited from my mothers retirement. I know 2100, isn't much, I just want to ask questions now and not find out later that I gave up 300-1000 dollars for not asking questions.
Thanks much for any help.
Russ
