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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
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
No, other than the standard $3,000 of net capital loss that can be applied against ordinary income.
-- Phil Marti Clarksburg, MD
Your 401k plan is a separate thing altogether, and all distributions from it are taxed at ordinary (regular) rates. Capital gains/losses are reported separately and fall where they lay. However.... I don't see why you need to take the entire amount from your 401k in toto. Indeed, your magic age only decrees when minimum distributions must start. Talk to your
401k custodian and set up a gradual withdrawal plan. ChEAr$, Harlan Lunsford, EA n LABeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.