Post by fastcarkid on Mar 13, 2015 7:19:25 GMT -7
Note: When you take a distribution from your 401K it adds to your income for that year.
If you have a significant loss, take a distribution equal to that stock loss, hence your distribution will have NO Tax consequences.
If you re-invest that money which is after tax dollars into a Roth IRA. The capital gains on the Roth incur No Tax liability after the 2nd full year invested.
Check with your accountants, everyones situation are a little different.
If we actually get nothing, I will take the full loss against my taxable income with a distribution to match that loss.
Otherwise, you can only book a $3,000 loss per year till the amount of your total loss is used up in your Tax filing.
NOTE: 2 I will still wait till the accounting is complete to count my losses, you should do the same, IMHO
If you have a significant loss, take a distribution equal to that stock loss, hence your distribution will have NO Tax consequences.
If you re-invest that money which is after tax dollars into a Roth IRA. The capital gains on the Roth incur No Tax liability after the 2nd full year invested.
Check with your accountants, everyones situation are a little different.
If we actually get nothing, I will take the full loss against my taxable income with a distribution to match that loss.
Otherwise, you can only book a $3,000 loss per year till the amount of your total loss is used up in your Tax filing.
NOTE: 2 I will still wait till the accounting is complete to count my losses, you should do the same, IMHO
