NUA and rollover with 60-day rule
Situation: Male age 64 will retire in May, 2018. His 401k holds the following: Company stock: $1,7m value, basis = $173k. Question: Once stock is transferred from 401k at Vanguard to a non-qualified account under NUA rules, can the basis be then “rolled over” to an IRA under the 60-day rule this avoiding ordinary tax as a distribution?
Example: Wondering if he can write a check for the $173k – calling it an IRA rollover account.
Permalink Submitted by Alan - IRA critic on Wed, 2018-02-14 16:24
Clearly, this could not be done by writing a check. However, there has been some debate whether shares adding up to the basis could be rolled over. This has been known as the “Frank Duke method”. The short answer is that the IRS would probably not approve this, at least knowingly. This has been extensively discussed in the following thread.https://irahelp.com/forum-post/17504-nua-lsd-401k