Ask Terry Questions Gifts to adult children from 401K

Gifts to adult children from 401K

By Terry Savage on February 17, 2024 | Wild Card

I am 71 years old and still working full-time.
May I gift to an adult child from my 401K tax free?
and if yes, how much per year?

Terry Says

No. Any withdrawals from a pre-tax retirement plan are taxed as ordinary income. Moreover, of you’re still employed, your plan may not allow withdrawals except in hardship cases.

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