In a WSJ article 9/25/98: Another option never before discussed on these boards (to my knowledge) is now possible. Evidently under IRS Code Section 402(e)(4) it is possible to take a distrbution of the entire amount and roll it into taxable account and take the taxable basis of the account. The owner of the account pays taxes on the basis (may be eligible for 5 or 10 year averaging for these taxes) The account grows like an ordinary taxable account and when securities are sold, long term capital gains taxes apply. My point is that this relatively unknown option provides another stategy for retirement planning. I invite TMFPixy and KAT in chicagoland and all the regulars to evaluate this option. See WSJ 9/25/98 page C1.On first blush this option has considerable advantages where the 401k has substantial capital gains, which if rolled into an IRA will be taxed as regular earnings, but would be taxed at lower rates if 402(e)(4) is taken advantage of, if I understand this right.Comments all!!!Joe Varga
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<