NUA

we have a client who still has company stock in a 401k. Timeline is below:

client is older than 59 1/2
client separated from service
client took a partial pension and partial rollover

Do they have an opportunity to exercise NUA on the company stock still in the 401K? or did they loose that when they made a decision on their pension options?



If the partial distribution from the 401k was prior to 2022, but after the date of separation or reaching 59.5, that partial distribution would disqualify the LSD needed to utilize NUA. If the distribution was this year they could still do the LSD this year. If the pension is from a DB plan, it would not be a factor.



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