401k NUA planning
Would it make sense to move funds inside a 401k into company stock prior to retirement in order to use the NUA rule a few later? This is assuming the stock is a good investment and funds would not be needed for a few years.
Would it make sense to move funds inside a 401k into company stock prior to retirement in order to use the NUA rule a few later? This is assuming the stock is a good investment and funds would not be needed for a few years.
Permalink Submitted by Alan - IRA critic on Sat, 2015-03-28 18:25
NUA is overrated in many cases. If the cost basis is more than 30% of the value, it is probably better to roll the shares over to an IRA unless you need the plan money to pay expenses right after the LSD. The value would probably not triple unless held for a considerable period from the purchase date. Obama’s budget also calls for elimination of NUA although that has a very slim chance of becoming law anytime soon.