Unitized Stock Shares Rollover
Hi: I recently rolled over company stock from a 401k in-kind to a Brokerage IRA. It was units I held in the 401k, but now it is shares. The amount of shares I own now is lower than the units I had before. What is the reasoning behind this? Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2014-10-08 20:57
Here is an explanation of why the number of units you held will be greater than the shares of stock you will have when your units are cashed in: https://wwwrs.massmutual.com/retire/plp/ctg/pdfs/ctg_company_stock_fund.pdf. The key is that the value of your units when cashed in should be the same as the value of your stock shares rolled to the IRA. You may also want to ask your plan if they offer an example of the acquistion and disposition of units to explain the math involved.