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Tommy is considering transferring his 401(k) plan to an IRA (he just retired yesterday). 30% of the assets in Tommy's 401(k) plan are his own
Tommy is considering transferring his 401(k) plan to an IRA (he just retired yesterday). 30% of the assets in Tommy's 401(k) plan are his own company (his employer) stock which Tommy originally purchased at an average cost of $15 per share. The stock is currently trading at $79 per share. Tommy has no intention of selling the stock any time soon. Suggest a strategy for Tommy regarding the transfer (or potential transfer) of the employer stock portion of his 401(k) plan. What can he do to lower his tax liability during the transfer?
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