Quote:
Originally Posted by Holladay
So the Qualified 423 is like a 401k? Sheltered from taxes?
She works for an off shoot of American Express travel department. Gets 15% discount on stock purchase.
So from what I understand is: qualified is tax help (shelter), non is not like a Roth but taxable at sale similar to a normal account...taxed a time of sale whether short/long term tax event?
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No. She uses after tax dollars to purchase the stocks. But the stocks are at a discount to market price. That discount would normally be taxed as compensation. Under a qualified plan it is not. That is the tax shelter.
That’s my understanding. The only one I ever dealt with was 15 years ago.