NUA
I have a client who still has a 401K with her previous employer, she has been taking her RMD’s from the plan since terminating the employment will this cancel the option of using NUA on the 401K if we roll the funds out?
I have a client who still has a 401K with her previous employer, she has been taking her RMD’s from the plan since terminating the employment will this cancel the option of using NUA on the 401K if we roll the funds out?
Permalink Submitted by Alan Spross on Wed, 2010-06-30 20:18
More than likely, NUA potential has been forfeited due to the RMDs being “intervening distributions”. Her final triggering event for a qualified LSD during her lifetime is the separation from service.
But really need more specifics ie. date of separation from service and years after that in which distributions were taken (whether RMDs or not) after the year of separation.