The $1M 401(k) Tax Trap – Why Retirees Could Pay Thousands More After Losing a Spouse
Many retirees believe having over $1 million in a 401(k) ensures financial security. However, a lesser-known issue—often called the “widow’s penalty”—can significantly increase taxes after one spouse passes away. Consider a married couple, both aged 73, with a $1.5 million traditional 401(k) and Social Security income. While both are alive, their tax situation appears manageable. But when one … Read more