JDM Financial & Investments, Inc.
Jerry D. Murphy, CFP™, founder and principal of JDM Financial & Investments, Inc. enjoys helping others achieve their financial goals and objectives. Mr. Murphy began his career in the financial services industry in 1993 as a Life Insurance Agent. After a few years as a Life Insurance Agent, Mr. Murphy felt compelled to expand his services to include comprehensive financial planning. He then started JDM Financial & Investments, Inc. Mr. Murphy is a board Certified Financial Planner (CFP®)
He is a graduate of both Bowie State University (Bowie, MD) and the College for Financial Planning (Denver, CO). He is a registered investment advisor rep. with the Securities and Exchange Commission (SEC) as well as a registered representative of the Financial Regulatory Industry Authority (FINRA), where he holds a securities license.
Mr. Murphy has been quoted in financial publications such as Financial Advisor Magazine, Investment News, Smart Money, Yahoo.com, Thomson Reuters, Investors Business Daily and The Wall Street Journal.
BS, Business Marketing, Bowie State University
If the stock is held outside of a tax deferred account (IRA, 401k, Annuity, etc.), then any dividends paid by the stock would be taxable. Until the stock is actually sold, appreciation of the stock is not taxable. On the contrary, if the stock falls below your cost basis and is sold, then you would incur a capital loss. Which could be used as a tax write-off.
However, if the stock is held in a tax deferred account and is sold, then you neither incur taxes on the gain nor can you write-off a capital loss.
In short, the answer to your question is no. The employer's matching contribution does not impact your maximum contribution of $18,000 in 2016 ($24,000 if at least 50 years old).
The withdrawal from your 401(k) may not have an effect on the amount of Social Security income that you are receiving. However, the withdrawal from the 401(k) could impact how your Social Security benefits are taxed.
Generally speaking, some people (not all) have to pay federal income taxes on their Social Security benefits. This normally happens only if they have substantial other income (wages, dividends, interest, withdrawals from retirement plans, etc.) that is reported as taxable income on their income tax return.
Basically, here is how you determine if your 401(k) withdrawal will cause your Social Security benefits to become taxable, calculate your adjusted gross income (not including Social Security, but including the 401(k) withdrawal) plus 50% of your benefits plus any tax-free interest. If the total is between $25,000 and $34,000 on single filing status tax return or between $32,000 and $44,000 on a joint filing status tax return, then up to 50% of your Social Security benefits can be taxed. The rest is tax-free. If your total exceeds $34,000 for single or $44,000 for joint return, it's likely that 85% of your Social Security benefits will be taxed. The maximum amount of benefits subject to income taxes if 85%. If your totals fall below the $25,000 (single) and $44,000 (joint), then your benefits could be tax-free.
Hope that this helps.
If the gifted stock is sold at a gain, that is classified as a capital gain. On the contrary, the stock is sold at a loss, that would be a capital loss.
The one-time capital gain exclusion for sale of a personal residence is the old rule for homes sold prior to May 6, 1997. Any personal residence sold after May 6, 1997 is subject to the "new" rule.
For a personal residence sold after 5/6/97, you can exclude up to $250,000 of capital gain ($500,000 if married filing jointly) on the sale of your home if you meet the Eligibility test:
Ownership requirement- If you owned the home for at least 2 years during the last 5 years leading up to the date of sale.
Residence requirement- If your home was your primary residence for at least 24 months you owned the home during the 5 years leading up to the date of sale. The 24 months can fall anywhere within the 5-year period. It doesn't even have to be a single block of time. All you need is a total of 24 months (730 days) of residence during the 5-year period.
If you have a disability, and are physically or mentally unable to care for yourself, you only need to show that your home was your residence for at least 12 months out of the 5 years leading up to the date of sale.
Hope that this helps.