Quote:
Originally Posted by Shadow8IA
What is the best way to handle ESOP investments when rolling over 401k? We got it them at $19 and they're worth about $140 each. Will capital gains taxes be changing?
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ESOP is a retirement plan similar to a 401k except in an ESOP you as the employee do not contribute. When ESOP is cashed out, the finds can go in to your 401k plan and be deferred. However when the funds do come out of the 401k, they are then taxed as ordinary income.
If funds are not rolled in to a 401k plan and are paid directly to you, then you pay ordinary income tax at that time.
No capital gain treatment as far as I know