NUA
Have client who is retiring from Verizon. He sold his stock in his 401k. some last year and some this year. He did this on his own.
a. can he get any tax breaks for the NUA before he rolls it over to an IRA for this year or last?
b. He still has about $30,000 of stock left in the 401k. Is it worth doing the cost basis NUA on that amount or no?
Thank you,
Douglas
Permalink Submitted by BruceM on Thu, 2007-11-01 18:48
Douglas
Assuming this is company stock….
a. Once the stock is sold, its no longer in the QRP and no longer available for the NUA option
b. The employer should tell you what the basis is of the remaining company stock. Once you know this, you can determin, based on the individuals marginal tax rate if NUA is worth it or not
BruceM