Does your 401(k) account include your employer's stock?

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What to do if your 401(k) account includes employer (company) stock that has increased in value: Employees usually roll their entire 401(k) balance into an IRA when they retire or otherwise leave their employer, and eventually pay ordinary income tax on the withdrawals that are made from that IRA.  However, if your 401(k) account includes stock in the company you work for (Microsoft, for example)   and that stock has appreciated, you may want to roll the appreciated company stock into a taxable brokerage account, while rolling the non-company assets into an IRA.  When the stock is ultimately sold at a profit, long-term capital gains tax treatment will apply, instead of ordinary income tax   A few caveats:  It will be taxed as a distribution, and you’ll pay ordinary income tax on the stock’s basis, since it was purchased with after-tax dollars.  If you’re under 59 1/2, early distribution penalties will apply.  Also, the entire 401(k) plan account must be withdrawn in the same tax year.   And once you do roll the company stock into a brokerage account, it will have to be held an additional year in order to obtain long-term capital gains treatment if the stock has further appreciated after the rollover.