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How a $1.6 Million 401(k) With Concentrated Stock Can Dodge the Tax Trap Most Executives Miss

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FOMOGRAM Editorial Desk
Aug 6, 2026
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How a $1.6 Million 401(k) With Concentrated Stock Can Dodge the Tax Trap Most Executives Miss
EXECUTIVE SUMMARY

When a medical-device VP got laid off after 22 years and found herself staring at $700,000 in company stock inside her 401(k), the obvious move would have cost her six figures in unnecessary taxes. There is a little-known IRS provision most executives never hear about until it is too late.

When a medical-device VP got laid off after 22 years and found herself staring at $700,000 in company stock inside her 401(k), the obvious move would have cost her six figures in unnecessary taxes. There is a little-known IRS provision most executives never hear about until it is too late.

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