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I'm probably breaking some tribal rule about posting the same question on two message boards, but this one's a toss-up (taxes or 401K), so I'm posting on both.

If there's a short-term need for cash (say, for a home purchase) and one's about to leave a 401(K) plan containing lots of appreciated company stock, is it a FOOLISH tax move to go ahead and take a distribution of the stock and then sell the stock to obtain the cash? Also - a NEWBIE follow-on question - if I go the stock distribution route, I presume I can still direct the non-stock value of my 401(K) into a traditional IRA. Yes? Thanks in advance for informed opinions!
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