NUA
One of the numerious requirements for NUA treatment is a lump-sum distribution (balance to the credit) of all enemployers “like” plans.
Question
An employer sponsors a 401k and DB penion plan. From my reading of the code these plans would not be “similar” for the purpose of plan aggregation. Is this a correct assumption?
Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2018-10-09 15:04
Yes, that is correct. Nonetheless, it is always recommended that when the LSD is requested the employee confirms with the plan that the 1099R will indicate a total distribution and show NUA in Box 6.