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aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
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where to invest $ from ESOP that is being closed out? IRA?
Our ESOP is soon going to be closed/cashed out and i need to think about where i'm going to put that money.
where is the best place? IRA?
how does that work with taxes?
Also, if i took out say $10k out of it before putting the rest into an IRA or wherever, how does that work? Would i pay taxes/penalty on it?
I'm clueless when it comes to this stuff so any advice would be great. Thank you.
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Posted 5/15/15 9:33 AM  |
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Paramount
Sweet!
Member since 7/12 4289 total posts
Name:
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where to invest $ from ESOP that is being closed out? IRA?
This is a VERY laymans opinion. I am NO tax professional, just telling you what I think since I owned stock in Circuit City as an employee.
I believe its just stock. So if you sell you pay taxes on the sale. If you were using this as a retirement account I would put it in a ROTH. This way you DONT pay taxes on the money when you take it out at retirement.
To be clear Im not sure im giving you correct advice, but at lasta little something to go on and not start from scratch.
I would encourage you to hire a financial planner who can give you correct advice, make sure you have money working for your retirement and make sure you have enough life insurance.
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| Posted 5/15/15 10:15 AM |
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LBBCHGRL
LIF Infant
Member since 1/08 199 total posts
Name:
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Re: where to invest $ from ESOP that is being closed out? IRA?
I worked for a company that had an ESOP program that got bought out. You can take some of the cash out but you will be taxed on that money when you file your taxes as it will be treated as income so decide if you really need it or not. Also, you may be able to take money out for to buy your first home with smaller tax implications. But I would ask the investment adviser what is the best option for you in regards to taking money out.
The ESOP program will ask you if you want to cash it out or you can roll it over into a retirement account. I put mine into a rollover IRA and I invest the money myself.
My company had investment advisers that we could meet with to explain the process to us. They were very helpful.
Good luck!
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| Posted 5/15/15 12:23 PM |
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aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
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Re: where to invest $ from ESOP that is being closed out? IRA?
Posted by LBBCHGRL
My company had investment advisers that we could meet with to explain the process to us. They were very helpful.
Good luck!
i hope my company does the same!
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| Posted 5/15/15 2:36 PM |
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newbie00
LIF Adult
Member since 3/11 1191 total posts
Name:
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where to invest $ from ESOP that is being closed out? IRA?
Beaware that if its pre-tax money and you move it into a roth you will be taxed at the time you roll it over. You just wont be taxed on it or the earnings once you reached eligibility. I would highly recommend speaking to an adviser
Message edited 5/17/2015 9:03:34 AM.
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| Posted 5/17/15 9:02 AM |
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aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
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Re: where to invest $ from ESOP that is being closed out? IRA?
Posted by newbie00
Beaware that if its pre-tax money and you move it into a roth you will be taxed at the time you roll it over. You just wont be taxed on it or the earnings once you reached eligibility. I would highly recommend speaking to an adviser
i don't have one. Any recommendations on an advisor?
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| Posted 5/17/15 1:53 PM |
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BlackJack96
LIF Infant
Member since 6/08 245 total posts
Name:
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Re: where to invest $ from ESOP that is being closed out? IRA?
I haven't deal with an ESOP but with other types of work employer accounts you can put them in a rollover IRA (roth or traditional).
With a trad IRA you pay taxes on the money when you withdraw it but with a Roth IRA you pay the taxes upfront but then when you withdraw the money no taxes.
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| Posted 5/18/15 9:54 PM |
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