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Author: JClick2484 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75669  
Subject: Limits when trading in a 401K? Date: 3/17/2000 4:24 PM
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I just came into a chunk of change from a relative's estate (a 401k which I rolled over into my name) and I would like to invest in the Foolish 4 or other sound method other than Mutuals....the problem is that I can't find any guidelines stating what I can or cannot trade regarding individual stocks, options, etc.

HELP!!!

Thanks.
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20232 of 75669
Subject: Re: Limits when trading in a 401K? Date: 3/18/2000 1:16 PM
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Who is the custodian of the account? What are their rules? Did it become an IRA account?

If its still a 401K plan account, the plan administrator will advise as to the rules and the investment choices you have.

You should have the ability to roll it over into an IRA account. That account can be transferred to a custodian of your choice. If a discount broker, you can trade stocks or mutual funds. If a mutual fund company, you may be limited to certain mutual funds.

All this depends on the details of your plan.

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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20241 of 75669
Subject: Re: Limits when trading in a 401K? Date: 3/18/2000 3:44 PM
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<< I just came into a chunk of change from a relative's estate (a 401k which I rolled over into my name) and I would like to invest in the Foolish 4 or other sound method other than Mutuals....the problem is that I can't find any guidelines stating what I can or cannot trade regarding individual stocks, options, etc. >>

Did you receive this money in 2000? AFAIK you cannot roll a decedent's 401(k) into anything unless the decedent was your spouse. It's a taxable distribution to you, and you will have to pay income tax on it for the year you receive it.

The good news is that once it's been distributed to you, you can do anything you want with it, but in a taxable account.

These issues are covered more fully in IRS Publications 575 and 590 and the Tax Strategies board's FAQ.

TMF ExRO
Phil Marti

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