NUA with No Basis
I am looking to use a NUA Strategy but my employer says they do not have an accurate record of my Company Stock Purchases in my 401k b/c they took it over and have no back records- Who’s responsibility is it to report the basis? What do I do now?
Permalink Submitted by Alan - IRA critic on Thu, 2015-04-02 15:37
Here is the IRS Reg on NUA determination. Due to the complexity of the calculation which would require a record of every stock purchase for the account of the employee, I highly doubt that the IRS would accept a taxpayer attempt to reconstruct the cost basis of his shares when a 1099R does not reflect NUA in Box 6, or reflects an amount that the employee disagrees with.https://www.law.cornell.edu/cfr/text/26/1.402(a)-1