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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10146
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I just received a large check I owned from a previous

Customer Question

I just received a large check for stocks I owned from a previous employer. Some of the stocks were purchased, some were given for retirement funding, and some were gained in a stock split. The company is privately held currently and not traded on any market. Can I put all of the proceeds into a retirement account and what would be my tax liability? I am turning 66 this month and just applied for social security.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,Your options will turn on what the transaction was ... Did the comppany buy back these shares from you ... Did they liquidate FOR you and then give you the cash proceeds?.Also were some of te shares held IN a reitrment plan such as an ESOP or 401(k)?.If you can give me more I detail I can answer morre specifically ... but likely, you'll have a capital gain on sale here..If you did not purchase ANY of these, then your basis is zero and the full amount would be either a capital gain OR part ordinary income and part capital gains, depending on how the stocks were held.
Expert:  Lane replied 1 year ago.
And on your second question, if you are still working, (and have earned income) then you may be able to contribute to an IRA and take a deduction ... Also, if the funds are still in retirement plan form, you can either ROLL/transfer to an IRA ... OR ... transfer to your current 401(k)..Let me known more about the ownership form, and where the cash came from (selling the shares, etc) and I can give you a more specific answer..Let me know ... I'll be here ....lane.

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