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Thanks Peter for your insightful consideration. I am definitely going to contribute and probably maximize it to the new 401k plan that my new company offers.

When I was talking about flexable options in regular brokage account, I was comparing it to 401k account. I do plan to roll the non stock part of my 401 plan into a IRA, and I am sure that's the best option for that part of money.

With the company stock part of 401k plan, I am still consider different options:

a. Let it stay in 401k. The plan will remain the same as before except no more contributions or matches. Advantage is cost basis preservation there. But overweighting in one single stock is a concern.

b. Roll over to IRA along with non-stock portion. The advantage is tax defered growth until retirement. But the loss of tax benefit on NUA is the disadvantage. The ordnary income tax is most likely higher than long-term capital gain tax in the future. By how much is an unknown.

c. NUA strategy. Like the idea of paying ordinary income tax only on cost basis or 8.3% of the stock holdings and long term tax rate on the rest. On the negative side, I need to pay extra 10% penalty or about 0.83% of total stock worth for early distribution. Also I have to take of a lump sum of the stock portion.

The question is this extra penalty worth the benefit of tax savings and diversification. Leaning to c but also considering other two options as well. Or maybe do a mix of a and c for my account and my wife's account.

Fools on,

Bin
Who really appreciated all suggestions provided so far
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