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Author: adsach Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19021  
Subject: Re: roll over??????????? Date: 8/2/2000 4:56 PM
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My father is retiring 8/11/00 so I do not have much time to advise him.
He has an employee savings plan in the amount of 80,000. If he is issued
a check from the company he will be taxed at the highest rate. Thus,
where should he put the money for capital preservation and in order to
not be taxed when he is issued the check

If the employee savings plan is company stock, then he should find out the cost basis of the stock. If he has a low cost basis on the stock, he may WANT to take a lump sum distribution and pay IRS penalty on the COST basis, followed by long term capital gains when he sells the stock.

translation: If the employee plan is in company stock that has tripled or more since he joined the company - talk to an accountant who understands IRS distribution rules.

Fool on,
Ad Sach Singh
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