No. of Recommendations: 0
Some time back there was a Question by a person who retired from a company and had large company stock holdings in his 401K. I recall a response which discussed withdrawing the stock from the 401K through the use of an IRS Form 4972 to reduce taxes. In my situation, I have about $16,000 in one stock (of a joint venture) with a cost basis of $4,500 and a second stock (of the joint venture)worth $230,000 with a cost basis of $76,000. I am 66 and do not need the money now. I am in the 30+% income tax bracket with an annual income over $150,000.
Can some knowledgable fool (Pixy?) offer me some advice on a strategy to lower my tax burden (with regard to these stock holdings in my 401K) so that I do not have to pay high "ordinary income" taxes when I start forced withdrawals at 70 and 1/2? Thanks.
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!
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.
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.