NUA
Am I correct that if a client is age 53 and takes advantage of NUA for company stock, that they will have a 10% penalty on the cost basis? Two different people at Fidelity told me no, there is no 10% penalty. Thank you.
Am I correct that if a client is age 53 and takes advantage of NUA for company stock, that they will have a 10% penalty on the cost basis? Two different people at Fidelity told me no, there is no 10% penalty. Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2017-01-24 19:30
You are correct. Penalty applies to the taxable portion of the cost basis (Box 2a amount), not to the actual NUA amount.