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What should I do with the stock tender offer money I received due to a merger?

I received and accepted a stock tender offer due to a merger. I received the check for the offer but don't know what I should do with it. Do I need to roll the full amount into an IRA account? What will the the tax implications be if I cash the check?

IRAs, Stocks, Taxes
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May 2018


Were the shares you tendered in an IRA or another retirement plan originally? If so, then you have 60 days to get the money into an IRA. There are some exceptions to the 60 day rule (see the IRS FAQs on this topic here).  If you do not qualify for one of the waivers listed, and it has been much longer than 60 days, the tax implications are the money will taxed as ordinary income and if you are under 59-1/2 there would be early withdrawal penalties. 

If the stock was in a general brokerage account then it is your money. The tax implications will depend on how much you paid for the stock and long you held the stock you tendered (If less than a year it will be subject to short term capital tax gains or losses, if you held it longer than a year then it is subject to long term captial gains or losses).