Income in respect of a decedent

Income in respect of a decedent.

Any income your beneficiary receives after your death that would have gone to you if you were still alive is described as income in respect of a decedent.

One example is the income your beneficiary gets as a minimum required distribution from your 401(k) or IRA. In this case, your beneficiary pays tax on that income at his or her ordinary rate, as you would have.