I have a 401k that has company stock in it. I have left the company and want to move the account. I know I can move the non-stock portion into an IRA, but I believe I have some choices regarding the stock, but I'm not sure.
Can I roll over the entire old 401k (including stock) into an IRA?
I know I can transfer the stock portion of the 401k to an individual account in my name and take advantage of NUA rules, but I would have to pay ordinary income tax on the cost basis I believe. This will save me money in the long run only having to pay capital gains tax on the gains when the stock is eventually sold. However.......
The cost basis of the company stock is Higher than its current value. Does that make it more sensible to roll over the entire thing to an IRA because of that fact or can I even do that??
If the stock portion only was transferred to an Individual account, would I have to pay ordinary income on the cost basis portion or no because it's at a loss?
Cost basis is $62,000
Current value is $48,000
Under age 59 1/2
State tax : 9%
any help is appreciated....
Can I roll over the entire old 401k (including stock) into an IRA?
I know I can transfer the stock portion of the 401k to an individual account in my name and take advantage of NUA rules, but I would have to pay ordinary income tax on the cost basis I believe. This will save me money in the long run only having to pay capital gains tax on the gains when the stock is eventually sold. However.......
The cost basis of the company stock is Higher than its current value. Does that make it more sensible to roll over the entire thing to an IRA because of that fact or can I even do that??
If the stock portion only was transferred to an Individual account, would I have to pay ordinary income on the cost basis portion or no because it's at a loss?
Cost basis is $62,000
Current value is $48,000
Under age 59 1/2
State tax : 9%
any help is appreciated....
