No. of Recommendations: 0
Greetings, Them, and welcome. You said:

<<JAFO wrote:
I am guessing that maybe these are former 401-k funds that were rolled into an IRA when your wife received her severance package.
Upon further questioning of my wife, it turns out the funds were from an ESOP (Employee Stock Option Program?) retirement account, that was rolled over into an IRA.
She never made any further contributions.

So, my take based on this and your observations, is that there were no nondeductible contributions ever made and hence we do not need to worry about the cost/value basis stuff on our taxes (remember, we're having to report that we yanked some $$ out of it *ouch*)

What do you think?>>

The ESOP was a qualified retirement plan fully eligible for a transfer to an IRA. Your wife mad no deductible contributions to that plan or that part of her ESOP money could not have been transferred to the IRA. You say you took a withdrawal from that IRA. In that case, the amount taken is fully taxable and, assuming she was under the age of 59 1/2 at the time of withdrawal, it will be penalized an additional 10% for premature distribution as well.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.