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Post by wiscdh on Nov 11, 2015 9:12:44 GMT -5
I wanted to get opinions on anyone with Mannkind shares in a 401k plan. I am over 59 1/2 and most of my MNKD stock is in my 401k plan. With the share price this low, does it make sense to convert these shares into a ROTH 401k plan and pay the tax now. For example, if you own 20,000 shares of MNKD and the share price is $2.00, converting the shares into a ROTH 401k plan would add an additional $8,000 tax liability based on $40,000 additional income at a 20% rate.
After the rollover into the ROTH 401k, you are no longer liable for any capital gains tax should the shares rise and now you control when you make withdrawals from the ROTH 401k versus the required minimum distribution once you reach 70 1/2 years old in a normal 401k plan. |
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Post by mdcenter61 on Nov 11, 2015 9:35:57 GMT -5
I think it makes some sense to convert to a Roth for the reasons you enumerated - only issues I see is the five year period Roth account needs to be open (if a new Roth) which wouldn't apply if you rolled into an existing Roth; other issue is if stock completely crumbled to 0 you could still take Roth loss but it would be as a miscellaneous deduction on your itemized deductions subject to 2% limitation, etc. Obviously works very well if stock takes off, which is ultimately what we all hope for, lol!
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Post by esstan2001 on Nov 11, 2015 10:56:50 GMT -5
I wanted to get opinions on anyone with Mannkind shares in a 401k plan. I am over 59 1/2 and most of my MNKD stock is in my 401k plan. With the share price this low, does it make sense to convert these shares into a ROTH 401k plan and pay the tax now. For example, if you own 20,000 shares of MNKD and the share price is $2.00, converting the shares into a ROTH 401k plan would add an additional $8,000 tax liability based on $40,000 additional income at a 20% rate.
After the rollover into the ROTH 401k, you are no longer liable for any capital gains tax should the shares rise and now you control when you make withdrawals from the ROTH 401k versus the required minimum distribution once you reach 70 1/2 years old in a normal 401k plan. Yes. I did similar (IRA->Roth), during the last major rout into the 2's. As long as you still believe this is a good long term investment. |
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