If I withdrew money from my 401K and give it as a gift to my son to invest in gold, will I be taxed for that transaction?

ANSWER

Expert Mark Anderson's Answer:

You will be subject to taxes and an early withdrawl penalty of 10% if the transaction does not qualify for an exception.  Also, you may need to file a gift tax return if the amount is over $13,000.00.   There may be a better way such as listing your son as a beneficiary.  I hope this answers your question. 

Mark Anderson, JD

Montana

21 yrs experience

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