Company Stock in old 401k

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Topic Author
optimismhelps
Posts: 61
Joined: Wed May 02, 2018 4:18 pm

Company Stock in old 401k

Post by optimismhelps »

My question is that I am currently holding my former employers company stock in a 401k plan that I still have. I have considered rolling the “old” plan into my current 401k plan, but I am not sure what happens to the Stock. Do I have to sell it? Can it remain where it is?( although that does not help me in consolidating accounts). Are there other options I should be considering?

Thanks
Optimismhelps
ClassOf2021
Posts: 135
Joined: Sat Dec 19, 2020 9:11 am
Location: New Jersey

Re: Company Stock in old 401k

Post by ClassOf2021 »

Are you planning on eventually closing the account and taking stock as NUA?
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Company Stock in old 401k

Post by dbr »

Yes, look up Net Unrealized Appreciation and see what sense that might make to you. It basically amounts to paying tax now but at a lower rate.
Topic Author
optimismhelps
Posts: 61
Joined: Wed May 02, 2018 4:18 pm

Re: Company Stock in old 401k

Post by optimismhelps »

ClassOf2021 wrote: Tue Dec 07, 2021 10:30 am Are you planning on eventually closing the account and taking stock as NUA?
If I closed the account what other option would I have with the stock? Could I move it in-kind with the rest of the old 401k ?
dbr wrote: Tue Dec 07, 2021 10:32 am Yes, look up Net Unrealized Appreciation and see what sense that might make to you. It basically amounts to paying tax now but at a lower rate.
Thanks- read but still a little confused.Can the stock be “transferred and held” into the new 401k I am currently participating in?
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Company Stock in old 401k

Post by dbr »

optimismhelps wrote: Tue Dec 07, 2021 2:16 pm
ClassOf2021 wrote: Tue Dec 07, 2021 10:30 am Are you planning on eventually closing the account and taking stock as NUA?
If I closed the account what other option would I have with the stock? Could I move it in-kind with the rest of the old 401k ?
dbr wrote: Tue Dec 07, 2021 10:32 am Yes, look up Net Unrealized Appreciation and see what sense that might make to you. It basically amounts to paying tax now but at a lower rate.
Thanks- read but still a little confused.Can the stock be “transferred and held” into the new 401k I am currently participating in?
You'll have to check with the new 401k about what can be held.
Topic Author
optimismhelps
Posts: 61
Joined: Wed May 02, 2018 4:18 pm

Re: Company Stock in old 401k

Post by optimismhelps »

dbr wrote: Tue Dec 07, 2021 2:32 pm
optimismhelps wrote: Tue Dec 07, 2021 2:16 pm
ClassOf2021 wrote: Tue Dec 07, 2021 10:30 am Are you planning on eventually closing the account and taking stock as NUA?
If I closed the account what other option would I have with the stock? Could I move it in-kind with the rest of the old 401k ?
dbr wrote: Tue Dec 07, 2021 10:32 am Yes, look up Net Unrealized Appreciation and see what sense that might make to you. It basically amounts to paying tax now but at a lower rate.
Thanks- read but still a little confused.Can the stock be “transferred and held” into the new 401k I am currently participating in?
You'll have to check with the new 401k about what can be held.
Ok - thanks, appreciate it!
sschoe2
Posts: 792
Joined: Fri Feb 24, 2017 3:42 pm

Re: Company Stock in old 401k

Post by sschoe2 »

I just rolled mine. The company was privately held but we got an ESOP as part of a profit sharing in our 401k. I received valuation notices about once a year or so. That company, which was the parent company of the company I work for, sold it to another company. So I received a cash out form from HR.

I have my brokerage and rIRA account at Vanguard and I set up a tIRA as well and provided the account number and the funds were transferred over apparently electronically as it was 1 day. I then just invested the funds in Total Stock Market and Total International Stock Market.
Topic Author
optimismhelps
Posts: 61
Joined: Wed May 02, 2018 4:18 pm

Re: Company Stock in old 401k

Post by optimismhelps »

sschoe2 wrote: Wed Dec 08, 2021 10:59 am I just rolled mine. The company was privately held but we got an ESOP as part of a profit sharing in our 401k. I received valuation notices about once a year or so. That company, which was the parent company of the company I work for, sold it to another company. So I received a cash out form from HR.

I have my brokerage and rIRA account at Vanguard and I set up a tIRA as well and provided the account number and the funds were transferred over apparently electronically as it was 1 day. I then just invested the funds in Total Stock Market and Total International Stock Market.
Thanks sschoe2
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