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Subject Author Date
701/2 401 payout! Jim Bergmann 10-03-2007
Posted by Jim Bergmann on October 3, 2007, 5:25 pm
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Required to take 401K as required by law. (70 1/2 deadline
NOVEMBER, 2007.)

Question: Can stock losses L/T or S/T be used vs. the gains
in the 401K upon mandatory distribution?

Have some sizable losses to partially offset the lump sum
distribution.

Thank you,

Jim Bergmann
Franklin, WI 53132

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<< that may be imposed upon the taxpayer. >>
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Posted by Harlan Lunsford on October 4, 2007, 5:56 am
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 Jim Bergmann wrote:

> Required to take 401K as required by law. (70 1/2 deadline
> NOVEMBER, 2007.)
>
> Question: Can stock losses L/T or S/T be used vs. the gains
> in the 401K upon mandatory distribution?
>
> Have some sizable losses to partially offset the lump sum
> distribution.

Your 401k plan is a separate thing altogether, and all
distributions from it are taxed at ordinary (regular) rates.
Capital gains/losses are reported separately and fall where
they lay.

However.... I don't see why you need to take the entire
amount from your 401k in toto. Indeed, your magic age only
decress when minimum distributions must start. Talk to your
401k custodian and set up a gradual withdrawal plan.

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Phil Marti on October 4, 2007, 5:56 am
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> Required to take 401K as required by law. (70 1/2 deadline
> NOVEMBER, 2007.)
>
> Question: Can stock losses L/T or S/T be used vs. the gains
> in the 401K upon mandatory distribution?

No, other than the standard $3,000 of net capital loss that
can be applied against ordinary income.

--
Phil Marti
Clarksburg, MD

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on October 5, 2007, 12:22 am
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Jim Bergmann wrote:

> Required to take 401K as required by law. (70 1/2 deadline
> NOVEMBER, 2007.)
>
> Question: Can stock losses L/T or S/T be used vs. the gains
> in the 401K upon mandatory distribution?
>
> Have some sizable losses to partially offset the lump sum
> distribution.

Your 401k plan is a separate thing altogether, and all
distributions from it are taxed at ordinary (regular) rates.
Capital gains/losses are reported separately and fall where
they lay.

However.... I don't see why you need to take the entire
amount from your 401k in toto. Indeed, your magic age only
decrees when minimum distributions must start. Talk to your
401k custodian and set up a gradual withdrawal plan.

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
another rollover Q re. payout as stock January 13, 2007, 1:53 am

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