10% penalty on NUA?
If an employee terminates employment before age 59-1/2, would the employee have to pay the 10% early withdrawal penalty on company stock distributed from the company plan under NUA?
If an employee terminates employment before age 59-1/2, would the employee have to pay the 10% early withdrawal penalty on company stock distributed from the company plan under NUA?
Permalink Submitted by Alan - IRA critic on Fri, 2014-03-07 20:16
If employee separated at 55 or later, there would be no penalty. If prior to 55, the 10% penalty would apply to the cost basis of the shares, but not to the NUA.