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TMFPixy answered..

"Yes, if you are not yet age 55, you will pay income tax on the cost basis of the shares plus a 10% early withdrawal penalty. You're right, that should be in the article, so I will take steps to ensure it is."

Can stock in a 401K be rolled-over to an IRA if you're not 55 when you leave the company and then make the same cost basis transfer procedure happen at 59 1/2 with the 10% penalty?

Also if service is terminated prior to 55, just leaving the stock in the old firm's 401K, if permitted to do so, still does not permit it's removal at 55 without penalty. Is that correct?

But could a person leave the stock in the old 401K until 59 1/2 and then pull it out, taxing it on the cost basis?

Are there any regulations that require the 401K administrator to keep "accurate" records on the cost basis of the shares?

Our 401K has moved 4 times in 10 years and as far as I can tell the cost basis has changed to market value each time the 401K was moved. It is obvious that none of the participants received the market value when a fund change occurred but our cost basis would leap with each change.

And no, I did not keep all the records over tha past 15 years of all donations and transfers. I was rather (small f) foolish back then.

Any help you can give me would be appreciated.

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