I’m trying to accomplish a transaction with a client. He has an old 401k with pretax dollars, Roth dollars and company stock (pretax).

We are trying to do a 3 part transaction. 1) Direct rollover of pretax dollars to traditional IRA 2) Direct rollover of Roth dollars to a Roth IRA 3) NUA of pretax company stock to a Joint account

The 401k company is telling me that the pretax Stock shares have to somehow be ‘run across’ the after tax (Roth) money before being sent out, and thus we could do a direct rollover of the pretax (non-stock), but Roth as well as the NUA stock would have to be paid directly to the client, and the NUA stock would count against Roth.

Anyone ever ran into this? I have done NUA multiple times and never experienced anything like it.