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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: 401k losses Date: 4/24/2001 5:03 PM
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I just rolled over a 401K from a previous employer. The cost basis of the holdings was greater than the sales price. How and when do I handle the loss?

You already have. Since your 401(k) contributions were deducted from your taxable income, you've never paid tax on them. You'll never have to pay tax at all on the amounts you lost, since you're only taxed when you withdraw from the 401(k).

IOW, you don't get any deduction for losses in a 401(k).

Phil Marti
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