Looking for a Great 401(k) Tax Break? Try Your Employer's Stock

Here is a question that will probably stump most financial experts: Is there any kind of investment in a 401(k) plan that can qualify for long-term capital gains treatment -- a 20% tax rate -- instead of ordinary income when you take it out of the plan?

Surprisingly, yes! The answer: Your employer's stock.

If you elected to take company stock as an investment option, or the company matched your contribution with company stock, chances are you have accumulated a fair amount of your employer's stock. When you retire or change jobs, you can take the company stock as a distribution (instead of rolling it over into an IRA account), and possibly create a significant tax benefit. ...