Net Unrealized Appreciation Strategy Allowed After An In-Service Withdrawal From Employer-Sponsored Retirement Plan?

Jeff owns highly appreciated employer stock in his employer-sponsored retirement plan. He plans on using the net unrealized appreciation strategy when he retires in 5 years at age 70. Jeff is currently 65 years old and would like to use the in-service withdrawal feature of his employer-sponsored retirement plan to move a portion of his employer-sponsored retirement plan to a Traditional IRA. Does the in-service withdrawal at age 65 eliminate his ability the use the net unrealized appreciation strategy when he retires at age 70?



It will eliminate use of NUA until a new triggering event occurs, being his separation from service. Upon separation he will again be eligible for a qualified lump sum distribution to utilize NUA providing that the share price is still high enough to warrant use of NUA at that time. 

Add new comment

Log in or register to post comments