NUA from QDRO
Can I use the NUA strategy if I am being awarded, via a QDRO, company stock that is being transferred to me in my spouse’s 401(k). The bulk of the stock is from years of employer matching?
Can I use the NUA strategy if I am being awarded, via a QDRO, company stock that is being transferred to me in my spouse’s 401(k). The bulk of the stock is from years of employer matching?
Permalink Submitted by Alan - IRA critic on Fri, 2015-08-28 21:21
Yes, you can utilize NUA, but will of course need to determine what the cost basis of those shares is. Check with the plan administrator to be sure that they will show NUA in box 6 of the 1099R should you take a distribution, and what your triggering event would be (for example employee’s separation from service, reaching 59.5 etc)You would also need to take a lump sum distribution of your entire interest in the plan in any year you qualify for the lump sum distribution. The rest of your balance would typically be directly rolled into an IRA while the company shares would be transferred into your taxable brokerage account.