Message Font: Serif | Sans-Serif
No. of Recommendations: 0
When you quit your hateful job 59 1/2 and start
living off your sizable 401k, you will be paying
taxes on the 401k disbursements. What gain
calculation methods are available for calculating
the tax liability in this case?

It seems that the only viable alternative is "average
cost" since most 401k statements aren't Foolish enough
to provide a complete transaction history -- thereby
eliminating anything but the average cost method.

But my foolish head tells me that "average cost" would
most likely *not* be the best choice since some "old"
shares might substantial gains and some "new" shares
might have small gains.

Can any Fools set me straight on this?
Is this a fact of life with 401k accounts,
or am I misinformed?


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.