Q: My husband (age 64) wants to retire by end of this year. We have a question about rolling over our 401K (amount $1.4 million) which contains lots of common stock. Is there a capital gains tax? I can provide more details regarding financial situation or come into your office.
A: Thanks for listening to the show and for your email.
If you own the company stock inside of the 401K, there will not be capital gains at the time when you sell the stock and/or retire. When you begin taking distributions from your 401K (which you will roll into an IRA), you will pay ordinary income taxes on the withdrawals as you would from any normal IRA.
We would be happy to met with you to discuss your situation in more detail. If you would like to make an appointment with Wes or any of our advisors, feel free to contact our New Appointment Coordinator, Barbara Barnett.