Fair enough - I stand corrected. That's a good point about the 5498 going to the IRS. Maybe it's not as big of a deal as I've been led to believe. I haven't yet had a client in this situation, partly because I remind them to report the contributions, and partly because I'm usually able to come up with a better option than withdrawing their contributions. Unfortunately, in this case, there might not be a better option for you.
Roth IRA Withdrawl Question
- Thread starter throwittoblythe
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Fair enough - I stand corrected. That's a good point about the 5498 going to the IRS. Maybe it's not as big of a deal as I've been led to believe. I haven't yet had a client in this situation, partly because I remind them to report the contributions, and partly because I'm usually able to come up with a better option than withdrawing their contributions. Unfortunately, in this case, there might not be a better option for you.
I think you have the answer to number two with what you are asking, never take out a "loan" again on an investment if you , don't want to/can't, afford the payments out of current budget.
PS. Hoping you the best in your new job search.
PS. Hoping you the best in your new job search.
I appreciate the advice and I agree with you in principle. The lesson for me is just a simple "don't owe your employer money." This is a forgivable loan arrangement. So the compensation incentive is you buy shares in the company, with a loan from the company, and the loan is forgiven over time. So, I wouldn't pay anything other than the taxes on the loan forgiveness (IRS treats it as income).
I ran through the "what if" scenarios when I took this job. Those included me wanting to quit some day. Back then, I figured "Eh, I'll just sell the shares back and be fine." What I didn't realize/appreciate is that choice is not mine.
If I could do it over again, I would've negotiated some sort of "quit clause" into the contract where this scenario is spelled out. It's a good life lesson and it won't be a financially crippling one; just uncomfortable.
Chizek coins are irreplaceable and should be worth a fortune.Withdraw it all and put it in Crypto.
I’ll cut you a deal and sell you mine for 500k. Don’t let this opportunity pass you up. You have 12 hours to say yes.
I have a feeling that your soon to be ex employer will not want you to own the shares. Many have a deal where you have to sell them back and generally not at FMV, it will be like 10% below or so.
I already have a fortune (2 Chiz coins). I don't want to be greedy and deprive some other person of the opportunity.
I’m sorry this does not respond to your original question, but I’ve never heard of a situation like this and have some questions. Is this a publicly traded company? If not, how do you value the stock? If the company offered to sell you this stock with a restriction that you couldn’t sell it when you want to and you had the cash in your checking account, would you buy it? If you didn’t have the cash and had to borrow the money from your bank, would you buy it? It seems like you are tying a lot of your future well-being to your employer.
