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Author: aitfool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122922  
Subject: taxes on 401k disbursements Date: 11/1/2000 2:52 AM
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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?


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