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Employer stock in 401(k)
originally posted: 11/22/2006
reposted: 2/18/2011 This post has not
been recently reviewed or revised by the author and may be out of date.
If you notice an error or are in doubt, please send a new question by
email or ask for an update. Email asktony@tonynovak.com.
Q: I have a large amount of
employer's stock in my 401(k) plan and I plan to leave and start my own
company soon. Can I roll this over into a
401(k) and then sell the stock to get cast to start my business?
A: You could do that, but it
would be a financial mistake. You can save a significant amount of tax
by using a little-know tax strategy
referred to as "Net Unrealized Appreciation" or "NUA" treatment. This
essentially allows you to pay the much lower capital gains rate of tax
rather than ordinary income tax rates. You should schedule a telephone
session for a tax planning discussion as soon as possible to allow time
to execute this strategy if you qualify.
Summary
More resources:
www.wealthmanangement.us.com
