Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I have borrowed from my 401k plan severial times. The moneys you loan yourself is just like any other loan and you can do with it what ever you wish. If you exercise your options then resell your stock, your profits would be a taxable event.

The question that I would have is:

1. Why do you want to exercise your options?
If you mother just want the profits, you can buy the stocks and then sell them in one transaction with no moneys put up on your part. This is a taxable event. I don't no of any way to shelter this event from taxes. My wife's son who works for SBC just did such a transaction. Talk with US West HR Dept. on how to do such a transaction.

If you mother just wants to take ownership of the stock, then she may have to find the money in her 401k.

2. Does she have to exercise her options now?

I believe that the best source for any info on what your mothers option are, would be a visit to or a call to USWest HR Dept.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.