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    1257's Avatar
    1257 Posts: 7, Reputation: 1
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    #1

    Nov 12, 2009, 12:32 PM
    Esop stock
    The stock is in my IRA and I was thinking of selling it and paying off my house balance what type of taxes would I be paying today's coast or coast at the time I got the stock and would I pay a10 present penalty I am 53
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Nov 13, 2009, 08:01 AM

    If you originally received the ESOP shares as a non-taxable event (which is likely), then when you withdraw it from your IRA the entire amount of the withdrawal is taxable - so to answer your question your tax is calculated using today's market value of the stock. You will also be hit with a 10% early withdrawal fee. This is not a good idea.
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