Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My Fello Fools;

I've got a good problem, but a problem nonetheless!

The company I've worked for for seven years was aquired last year...Gee, don't see much of that these days???

Anyhow, the ESOP plan with my former company is preparing to pay out the $50k they owe me in ESOP money. They are looking for advice on how I wish to have it paid.

One of the options is to roll it over into an IRA. I've been considering starting a Roth IRA as a means of funding my kids college (twin 1yr olds).

1. Can I put all, or the vast majority, of the ESOP money directly into this account "tax free" or will it be subject to the $2000 limit?

2. Can I split this money, once again tax free, between a Roth IRA for myself and one for my wife?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.