nua plr8538062

Submitted by Joe Wilson on Wed, 2013-03-20 19:30

What about the strategy of rolling over shares of stock equal in value to the cost basis within 60 days per the above plr? The 1099r and the 5498 will match up and i have seen others endorse the strategy.



Submitted by Alan - IRA critic on Wed, 2013-03-20 21:24

  • We don’t really know how the IRS would rule on this today. In 8538062 the IRS allowed the cost basis to be aggregated over all the distributed shares, but current thinking is that the cost basis per share is embedded in each share of stock. If so, shares rolled over to an IRA would forfeit NUA value and that value could not be transferred to the remaining shares. If someone reported no cost basis for the distribution of NUA shares in an LSD, it might get through the IRS or it might not.
  • Here is an extensive thread debating this issue: https://irahelp.com/forum-post/17504-nua-lsd-401k
  • 1099R and 5498 would not match up however, since the 1099R would show the gross LSD and the 5498 would only report the IRA rollover amount.


Submitted by Joe Wilson on Thu, 2013-03-21 14:24

Thank you so much for the thread link. The strategy sounded sketchy and the extensive discussion helps me confirm that.



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