Net Unrealized Appreciation

can someone who retired from a company at age 60 but kept his 401k account there do a net unrealized appreciation transfer of the company stock that is in there if he rolls out the entire account and splits up the stock intoa nonqualified accoount adn the rest into an ira? He is now 70. Thanks Charlie



If he has not taken ANY distributions from the plan since retirement, he is still eligible to do the lump sum distribution required to utilize NUA. Since he will be 70.5 this year, part of his distribution will have to be allocated to his 2013 RMD, but both the NUA cost basis and the NUA itself can be applied to the  RMD. That would probably cover the entire RMD.

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