Q. My brother, and only sibling, died recently. I am the executor and beneficiary of his estate. He never married, nor did he have children. I am inheriting: $770,000 from an employer 401(k) managed by Vanguard; $73,000 from a past 403(b) pension; and $320,000 in life insurance proceeds. I am 59, receive a military pension ($60,000/year), and am employed full time by the federal government. I have $500,000 in the TSP. Can any of the inherited funds be rolled into my TSP? Can any or all of the inherited funds be combined into a single fund? What would you do?
A. The TSP will not accept funds from a beneficiary account. The life insurance proceeds are likely tax free and yours to do with as you please. The 401(k) and 403(b) assets can be rolled into beneficiary IRA accounts. You should hire a CPA to help you decide how to handle these accounts.
