NUA question
Taxpayer purchased employer stock in her 401(k) over a number of years.
If the employer identify what she paid for each lot, can she use NUA treatment only for certain lots (with low cost) and roll the other lots into an IRA?
Thank you in advance,
Art D
Permalink Submitted by Alan - IRA critic on Mon, 2016-12-05 19:53
That would not be a problem with the IRS, but it depends on whether the plan will perform the accounting and reflect the remaining cost basis of the lower cost basis shares and the higher NUA amount on the 1099R reporting the share distribution. Most plans use an average cost basis for all the shares.