I have a client that turned 59.5 last year in June, did a partial rollover from his 401(k) in September, then separated from service in December. His plan was to roll out company stock from his 401(k) using NUA in 2016 along with rolling over the remaining balance to an IRA (full liquidation by yearend). Does the partial distribution eliminate the NUA opportunity, or did the second triggering event (separation from service) save this option?

Thank you,

Josh Harmon