No. of Recommendations: 3
dbphd posts,

I consulted with the finacial manager privately as well as attending his classes. He advised that I leave my retirement funds at TIAA-CREF and not move them, most of which were in a fund that emulated the S&P 500. Instead, I foolishly created several hundred thousand in tax liability, and learned how merciless an IRS collector can be.


A lot of people at Exxon (and their advisors) have seemingly never heard of the "Company stock rule" that allows you to sell the company stock in your 401k plan and pay capital gains rates on the appreciation. Roll your 401k into an IRA on retirement, and you pay ordinary income taxes on the whole thing.

The lost tax break is a big number on a 7-figure account.

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