How to handle the sale of stock in 401K after retiring for best tax savings
Trying to get tax advice. I recently retired from AT&T. I kept my 401K account and haven't rolled it into anything else yet. I have some Warner Brothers Discovery stock in that 401K that I received in April 2022 when AT&T spun off Warner Brothers. They gave us WBD shares but the value of our AT&T shares dropped at the same time. And the WBD shares are worth less than the basis. We are being forced to move the WBD stock to another investment in the 401K by April 10th. Is there a way to just sell the WBD shares (and take the cash) and pay little to no taxes since it's technically a loss? Since not yet 59 1/2, guessing there would still be the 10% penalty. Would Net Unrealized Appreciation do anything to help in this situation? As far as taxes go, am I better off cashing out the WBD shares or better off moving the money from the WBD stock into another investment in the 401K and not pulling the money out at this time? Or is there another option I'm not aware of that would be better tax wise. Prompt advice is much appreciated, thank you.
