401(k) Encore

My column on a tax-saving strategy filled the mailbag with questions. Here are some answers

Two things are clear from the deluge of mail I've received since my "Retirement Tricks" column ran several weeks ago: 1) a whole lot of people are sitting on a whole lot of highly appreciated employer stock in their 401(k) plans, and 2) despite a fair amount of press, confusion reigns concerning an IRS rule that permits people who retire or switch jobs to take possession of their company stock rather than roll it into an IRA.

Taking possession of employer shares can cut your tax bill. When you eventually sell, the profit is taxed as a capital gain at 20%...

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