Samantha Rocco Quoted in NJMoneyHelp.com Column Discussing Inheritance Taxes on Retirement AccountsJuly 12, 2023
Samantha Rocco, an associate in Einhorn Barbarito’s Taxation and Wills, Trusts & Estates groups, was featured in the NJMoneyHelp.com column “We inherited a retirement account. Is the inheritance tax due?”
The reader’s question asked whether a New Jersey inheritance tax is imposed when an individual leaves her Thrift Savings Plan, a retirement savings plan for federal employees and members of the uniformed services, to her nieces.
Rocco explained that while certain retirement benefits available to federal employees are exempt from the New Jersey inheritance tax, specifically “proceeds of any pension, annuity, retirement allowance, return of contributions or benefit payable by the United States government under the Civil Service Retirement Act, Retired Serviceman’s Family Protection Plan and the Survivor Benefit Plan so long as such benefits are payable to a beneficiary other than the decedent’s estate or the executor or administrator of the decedent’s estate,” all other pensions, annuities, retirement allowances and returns of contributions payable by the United States to a niece, nephew, or other Class D beneficiary, are subject to the New Jersey inheritance tax.
To find out more about what types of assets are subject to inheritance tax, or for other tax and estate planning issues, please contact Samantha Rocco.