No. of Recommendations: 1
Because if you sell the stock in the 401k, you WILL pay income taxes on it. If you do NUA correctly, you will pay capital gains (capped at 15%) on the difference between the purchase price and the sale price. For someone that has worked for 20 yrs with a 500k account, this easily amount to over 100K in savings.

If you own your own company stock in your 401K - RUN to your nearest broker (even the broker at your bank - if they are series 7 licensed can do this) and do this when you retire.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement