NUA eligibility
If a client does an in service 401k IRA rollover for a large portion of their 401k but keeps the 401k active and continues to make contributions to the plan for as long as they are employed, would this disqualify them for NUA treatment on company stock when they separate service and rollover the remaining balance?
Permalink Submitted by Alan - IRA critic on Tue, 2017-03-14 16:32
No, separation from service is a triggering event for NUA, and any remaining employer shares in the plan could be utilized for NUA purposes after separation. A qualified LSD would of course be required.