NUA Decision
Is there a document or process that would walk someone through the decision to either pay taxes using NUA rules, or rolling to an IRA? Thanks very much.
Is there a document or process that would walk someone through the decision to either pay taxes using NUA rules, or rolling to an IRA? Thanks very much.
Permalink Submitted by Alan - IRA critic on Fri, 2016-02-12 01:43
You could try googling an article by John Nersesian written for the FPA Journal around 2004. It includes some examples comparing rollovers with NUA utilization.
Permalink Submitted by Bruce Steiner on Fri, 2016-02-12 16:58
I wrote an article on this in the January/February 2001 issue of the Journal of Retirement Planning. However, both my article and the one Alan cites were before the $100,000 income cap on Roth conversions expired. A Roth conversion often adds substantial value. Now that Roth conversions are available to anyone regardless of income, you have to take the potential Roth conversion into account in comparing NUA to rollover. That will make the rollover more attractive more often than it was before the Roth conversion was available to everyone.