Company Stock Could Be Taxing Your IRA

Americans hate paying taxes on their hard-earned income. This sentiment is one of the reasons that tax-deferred retirement savings plans, such as 401(k) plans, have become so popular.

There is no question a 401(k) is a great way to save for retirement. And with the baby boomer generation closing in on retirement age and people increasingly changing jobs these days, plenty of workers are faced with decisions about what to do with 401(k) holdings from old jobs.

Making investment decisions strictly on the basis of tax deferment, however, isn't always the best strategy. When you have your employer's stock in a qualified retirement plan, there is a little-known tax play you'll want to check out when you decide to retire or leave your company. ...