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Hight posted;

"The company stock that I've been given for all these years has just been released - I took early retirement. The problem is that it's gone down so much - I've already lost several thousand $$$ - that I don't know whether to keep it or sell and take the loss on my income tax. At the moment it's still part of my IRA along with my 401K mutual funds. The funds are fine. It's the stock I'm afriad of. I need to have something to make money to help pay off the rest of my debt."

If the stock is being held within either an IRA or 401k, then selling it does not make it a taxable event. Income tax will be due when you take cash from the 401K or IRA and issues like stock loss or stock gain with a 401k makes no difference.

As far as holding company stock within a retirement portfolio like a 401K, I use a rule of thumb not to hold more than 10 to 15% of company and I am now working on re-allocating my stock into other mutual funds. I understand that some plans do not permit allocation until the stock is released. Now that it is, you should consider reallocating these stocks if they make up more than 20% of your retirement portfolio.

BGP
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