[mitchntx]

I don't understand all I know about legalized money laundering, AKA rolling a 401K.

Backstory ...

I have been contributing to a 401K and receiveing a company match in stock at 60% for a while now ... maybe 20 years.
My comapny is being bought and taken private.
As I understand it, if the buyout is approved by the shareholders, my stock will be cashed out at the approved price and I will be issued a check. (IMG:http://www.frrax.com/rrforum/style_emoticons/default/blink.gif)
Taxes will be withheld (IMG:http://www.frrax.com/rrforum/style_emoticons/default/mad.gif)

Help needed ...

If I roll it into another approved option within the specified time frame, I can recoup the taxes next return. I understand that.

But I want to avoid the tax thing altogether. I want to maintain that 28% of the fund in my retirement and continue it growing.

I need some coaching on doing this as I don't understand all I know about it and time to educate myself is running out. Making a mistake or misunderstanding a small detail could have big financial ramifications.

[z28tt]

Will the new "company" have a 401k? As long as the money is rolled over (transferred) into another qualified plan (401k, IRA, etc...), then you shouldn't have any tax consequences now. If you have the 401k cashed out (distributed), you pay taxes (bad, mmm-kay!). Every time I've changed companies, I've moved my 401k over to the next one, and kept it growing. Now that I'm self employed, it's still at my former company, and they're letting me maintain it there (I don't think there's even a small administrative fee). Depending on how tight your company is, I'd ask your CFO or another co-worker that has their ducks in a row, or whoever has a hand in the stock buy-out. I'm sure they're doing what they can to minimize their tax liability... The company that administrates your 401k funds (we had John Hancock, which bought out Manulife) should be able to tell you as well. Get as many opinions as possible, but rolling over a 401k should be a simple 1 page form, and not require hours of financial planning.

Andris