RMD and NUA

Submitted by Joel Yudenfreund on Mon, 2016-03-21 17:32

In a post on 9/15/2010, there was a question regarding whether the distribution of employers securities and the net unrealized appreciation satisfy the RMD for the year of the withdrawal of the employer securities. The answer was yes and that the cost basis and the NUA portion count toward the RMD. Does anyone have a cite to authority for this? Thank you.



Submitted by Alan - IRA critic on Tue, 2016-03-22 02:09

IRS Reg. 1.401(a)(9)-5, Q 9:

Q-9. Which amounts distributed from an individual account are taken into account in determining whether section 401(a)(9) is satisfied and which amounts are not taken into account in determining whether section 401(a)(9) is satisfied?A-9. (a) General rule. Except as provided in paragraph (b), all amounts distributed from an individual account are distributions that are taken into account in determining whether section 401(a)(9) is satisfied, regardless of whether the amount is includible in income. Thus, for example, amounts that are excluded from income as recovery of investment in the contract under section 72 are taken into account for purposes of determining whether section 401(a)(9) is satisfied for a distribution calendar year. Similarly, amounts excluded from income as net unrealized appreciation on employer securities also are amounts distributed for purposes of determining if section 401(a)(9) is satisfied.

Submitted by Marty Eggerss on Tue, 2024-07-30 14:08

Could someone point me to the actual IRS publication where this is found? I’m having trouble finding it. Thanks.

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