My wife will receive half of my 403(b) upon my death; my two children will receive a quarter each.
In the event my wife precedes me in death, I would like to gift her half to her three children. I understand that the federal government will claim 20% upon withdrawal. Will there be any other tax implications, either for me or the recipients? i.e., will my AGI for the tax year be affected, if I am gifting the entire amount?