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Level 1
November 16, 2022
Question

Profit sharing funds

  • November 16, 2022
  • 1 reply
  • 9 views

The company my husband worked for was sold this year. He received a profit-sharing check after the sale was finalized, but taxes were not taken out. Is it best to transfer those funds to a 401k to avoid paying high taxes next April? We are in the 50+ age range and neither of us has reached the 401k limit yet. 

    1 reply

    Level 5
    November 16, 2022

    It would be best to rollover to a 401K. The time limit to do so is 60 days from date of receiving distribution, or the amount will become taxable.

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