Slow But Steady
Recycles dryer sheets
Dear Friends,
I need to tap the collective wisdom of the board.
I thought I had my 401k rollover problem all figured out, but then the Vanguard guy told me something about using after tax (not Roth) company shares in the 401k to offset some of the ordinary income from rolling over the appreciated company stock. He told me at least two different stories about how it works, and I haven't been able to google up a clear explanation either.
I'm trying to decide whether to roll the after tax company shares into a Roth IRA or transfer them into a taxable account to offset part of the ordinary income from the NUA shares.
Adjusted to round numbers, I have
$200K current value of before-tax shares with a basis of $100K
and
$110K current value of after-tax shares with a basis of $40K.
If I roll them all into a taxable account, what will be the net taxable income that I will see on the 1099?
Thanks for your help!
I need to tap the collective wisdom of the board.
I thought I had my 401k rollover problem all figured out, but then the Vanguard guy told me something about using after tax (not Roth) company shares in the 401k to offset some of the ordinary income from rolling over the appreciated company stock. He told me at least two different stories about how it works, and I haven't been able to google up a clear explanation either.
I'm trying to decide whether to roll the after tax company shares into a Roth IRA or transfer them into a taxable account to offset part of the ordinary income from the NUA shares.
Adjusted to round numbers, I have
$200K current value of before-tax shares with a basis of $100K
and
$110K current value of after-tax shares with a basis of $40K.
If I roll them all into a taxable account, what will be the net taxable income that I will see on the 1099?
Thanks for your help!