From: "aceindahole" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Something I do not understand about 401(k)'s
Date: Thu, 20 Jul 2006 08:21:11 -0500
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	=FDiR

OK I understand now.  So when theny are taxed and trades etc I make now
etc... will be taxed long term or short term??


BreadWithSpam@fractious.net wrote:
> gbongi1@gmail.com writes:
>
> [Within your 401k:]
> > Lets say I want to sell 50% of my funds so they cash out to my
> > "Fidelity Cash reserves Account" because I think the market is going to
> > take a turn for the worst so I want to protect my investments.
> >
> > When I sell those funds and turn them into cash. When do I pay the
> > taxes on those gains?
>
> You don't pay any gains on that until you transfer it from
> your 401k *account* to a non-401k (or non-IRA) account.
> ie. you don't pay taxes until you take a distribution which
> puts the money into an account from which you can actually
> spend it.  Which, theoretically, will be after you retire
> a long time from now - and means that between now and then
> your investments - whether you buy and sell within the account
> or just let them sit and grow within the account - are
> "tax-deferred".
>
> --
> Plain Bread alone for e-mail, thanks.  The rest gets trashed.
> No HTML in E-Mail! --    http://www.expita.com/nomime.html
> Are you posting responses that are easy for others to follow?
>    http://www.greenend.org.uk/rjk/2000/06/14/quoting


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