NUA Distribution from a Retirement Plan age 59 1/2….
“I have a client who is retiring and is 59 and 3 mths old If we wait to process a distribution from her retirement plan until she is 59 and 7 mths old can we process a NUA distribution and avoid the pre 59 1/2 premature distribution penalty on the cost basis of the NUA stock”
Permalink Submitted by Lisa Doherty on Wed, 2014-02-26 20:49
I am pretty sure that she may likely qualify for a penalty free withdrawal at age 55 from the 401k, if so, then you could do it now or later. check out that avenue first if you’d rather move it now
Permalink Submitted by Alan - IRA critic on Wed, 2014-02-26 21:12
Agree. The age 55 separation exception should waive the penalty and there would be no need to wait.