Can sister take out 50,000 in stock without paying a penalty

Asked about 1 year ago - Tampa, FL

My sister has $50,000 in stock...she is 39 and had became disabled is there any other way she can take her money out without being charged a big fee by IRS?

Attorney answers (3)

  1. Heather Morcroft

    Contributor Level 20

    2

    Lawyers agree

    Answered . I changed the category to tax because I think you are more likely to get a useful answer. I don't know a lot about this, but if this is just straight stock, she can sell it and only pay, I believe, any capital gains tax, whereas if it is in any kind of tax sheltered vehicle, like a 401K, then she would have to pay, I believe, a penalty. She needs to talk to a tax lawyer or an accountant, and be more specific about exactly what it is she wants to do. She may also want to consider the possibility of taking a loan against the asset if that would be more useful to her financially. She is basically borrowing from herself, and that can be a good thing.

    ***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ******
  2. Evan A Nielsen

    Contributor Level 18

    2

    Lawyers agree

    Answered . There are many possibilities but they all are dependent on the details of the transaction. What she paid for the stock, how long it was held and a number of other factors. Best to contact a tax attorney or give us a call to review where the full details of the transaction options can be discussed and a plan formulated.

    Good luck.

    Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The... more
  3. Clint Curtis

    Contributor Level 16

    2

    Lawyers agree

    Answered . In order to provide you with a quality answer, we would need a great deal more information and that information is not something that you could put on this forum. Visit an estate planning attorney to discuss all the option available. A little advice up front can save a huge amount later.

    Disclaimer Information on this site is provided by attorney Clint Curtis as general information and not specific... more

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