Selling stock in wife’s 401(k) through Fidelity
My wife and I are debt-free. 55 years old. We have over $400,000 in Abbott and abbvie stock. Gross income $150,000. Roughly. What are our tax consequences. If we sell $100-$150,000 of the stock. Looking to put it in money market to secure for futureWorried about market crash again?I know we have to pay capital gains. We have done very well for ourselves. Just looking to secure some of our financial good fortunes !
Terry Says
The headline in your questions says the stock is INSIDEa 40l(k) plan! And you mention Fidelity.
I don’t know what that means in this case, but the tax consequences are far different depending on whether it is inside a plan or outside. PLUS, your accountant will tell you that there is a special dispensation for company stock, that could allow you to sell it for capital gains treatment (currently much lower than ordinary income taxes).
Please write back with more details of how this stock is held. Also if it is stock in a company that she works/worked for , then ask the company about the tax treatment of this stock. It’s difficult to give advice like this without all the info — although I understand the desire to raise cash as you/she approach retirement.
