For the sake of simplicity, we had to use a number of assumptions. Please bear in mind that your personal situation may not match these assumptions (for example, if you plan to sell your company stock over many years instead of selling all the shares in one sale).
- All calculations are based on the inputs you provide and address only the company stock in your retirement plan distribution.
- All contributions to purchase company stock in your retirement plan were pre-tax.
- All shares of company stock distributed from your retirement plan are held for at least one year after being distributed and are sold in one sale.
- The company stock does not pay dividends.
- Distributions from the Rollover IRA are 100% taxable.
- The federal income tax and capital gains rates you enter today will be the same when you sell your shares; your beneficiary's federal income tax and capital gains rates are the same as yours.
- Brokerage fees, state taxes, and estate taxes are not taken into consideration.
- Minimum Required Distributions (annual withdrawals from a Traditional IRA which must begin in the year you turn 70½) are not taken into account.
Warning: This tool should not be relied upon as your sole or primary means for making retirement planning decisions. You should discuss your situation with your financial planner, tax advisor or estate planning professional to identify your specific issues.