401K

Melissa

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Apr 10, 2002, 10:42:34 AM4/10/02

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I have a question about 401K...does anybody know?

In one investment, we have lost all of our gains and about 30-40K in
principal. If you sell a "regular" stock at a loss, you can deduct that from
income tax, I think?

What about 401K? We took the recommendations of Merrill Lynch and put tax
differed money into stocks that have little value now. Is there any way to
get a tax benefit from this?

Anyone see Deltacom lately? .25 a share. For the price of a case of beer one
could become a major share holder in that company.

Melissa

Ron Hammon

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Apr 10, 2002, 1:55:10 PM4/10/02

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I need to check on a Canadian friend. When I worked with him in
Louisiana a few years ago, he was seriously into trading stocks and
bragged of his success. I informed him by email when my daughter took
my advice and invested her $500 savings into P&G after their crash two
years ago. He did not like the potential rate of return of even a
grossly undervalued blue chip stock. Now, two years later, she got out
with a 50% increase (minus the horrendous quarterly charges that
Ameritrade started taking; $14 per quarter on accounts less than
$1,500). I wonder if Jon was caught in the plunge. I'd love to say, "I
told you so, Mr. Expert."

On January 23, I hinted here that KM might be a high risk/high gain
investment. It has doubled in less than three months. You can't get
much better than that. I feel pretty good about my record even though
I've never invested a cent.

--
Ron Hammon
Remove the "y" from ".nyet", when present, to reach me.

Greg Bacon

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Apr 10, 2002, 2:19:29 PM4/10/02

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In article <ub8jt6e...@corp.supernews.com>,
Melissa <m...@knology.net> wrote:

: I have a question about 401K...does anybody know?
: [...]

In matters involving $30k-$40k, I'd strongly recommend consulting a
tax advisor, not a bunch of hsv.general know-it-alls. :-)

I'm not trying to be a jerk about it, so please don't take it that way.

Greg
--
Comfort rides shotgun with the temporary.
-- Daniel Weinshenker

thomas

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Apr 10, 2002, 4:50:56 PM4/10/02

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On Wed, 10 Apr 2002 09:42:34 -0500, "Melissa" <m...@knology.net> wrote:

>I have a question about 401K...does anybody know?
>
>In one investment, we have lost all of our gains and about 30-40K in
>principal. If you sell a "regular" stock at a loss, you can deduct that from
>income tax, I think?

Nope...you never paid taxes on it.

Melissa

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Apr 10, 2002, 6:00:57 PM4/10/02

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> I'm not trying to be a jerk about it, so please don't take it that way.
>
> Greg
> --

I won't, but I will apply more needles to my voodoo doll named Greg as soon
as the moon is high!

Melissa

Greg Bacon

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Apr 10, 2002, 10:00:23 PM4/10/02

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In article <ub9dj6b...@corp.supernews.com>,
Melissa <m...@knology.net> wrote:

: > I'm not trying to be a jerk about it, so please don't take it that way.
:
: I won't, but I will apply more needles to my voodoo doll named Greg as soon

: as the moon is high!

So *that* explains the nagging ache... :-)

Greg
--
Intellect annuls Fate.
So far as a man thinks, he is free.
-- Ralph Waldo Emerson

full name

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Apr 11, 2002, 10:45:31 AM4/11/02

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if I were you I'd seek QUALIFIED advice

dse...@hiwaay.deletethis.net

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Apr 11, 2002, 4:48:29 PM4/11/02

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Please confirm this with your 401-K plan administrator, but AFAIK
there is absolutely nothing you can regarding taxes, or anything else
for that matter, if you "lose" money in a 401-K. Actually, you are
not "losing money," but the value is fluctuating until you retire. As
far as the IRS goes, there is no "loss," even if the value drops to
zero, as long as you're still working. I believe that the trade-off
for the tax-free growth is no tax break on a "loss." Ask the Enron
employees, and your plan administrator. The details of 401-K plans
vary, but the basic deal with the IRS remains the same.

Dan

On Wed, 10 Apr 2002 09:42:34 -0500, "Melissa" <m...@knology.net> wrote: