NUA on 401k
Have client who has two stocks. GE Verona stock and GE common stock.
Verona stock has a cost basis of $3104 and value of $11,388
GE common stock has cost basis of $12,343 and value of $28,857
capital gains would be short term or long term
Questions:
- Not asking advice if NUA should be done but asking would the NUA be something I should check into?
- The 401k company stated that since he has taking RMD’s for 2023, 24 and 25, this disqualifies the NUA, is this correct?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-17 17:15
The plan administrator is correct that the intervening distributions since the last triggering event disqualifies a lump sum distribution for NUA purposes.
The cost basis of almost 40% of total value would not have been very attractive for NUA anyway.