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Accounting, Payroll & Pension Issues/loss on my Lucent Savings Plan
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Question
I was employed by Lucent for approximately 10 years. My savings plan is currently worth $10K, with a cost basis of approx $34K. I'm 60 yrs old. If I withdraw the $10K this year (assuming numbers stay the same) can I claim a loss when filing income tax next year? Thank you.
You can use capital losses to offset a like amount of capital gains.
You can only use the stock loss to offset up to $3,000 of ordinary income in a year. That's the bad part, the good is you can carry over that every year until use up the total loss.
Good luck
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Thank you so much for your quick response. I've claimed losses on stock sales in the past and do know about the $3k/yr limit. However, I was unsure if I could claim losses from a company retirement savings plan. | ||
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Accounting, Payroll & Pension Issues
Answers by Expert:
Ed McFarland
Expertise
Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.
Experience
Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.
Education/Credentials
MBA
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