NUA to Donor Advisor Fund

Submitted by Gil Shifrin on Fri, 2019-12-06 18:54

January 2019 I moved all of my company stock in a 401K to a taxable account. (NUA) I moved the rest of the investments to an IRA. Last week I decided to move a portion of stock in taxable account to a DAF. When I started this process I was told by brokerage house that only the cost basis could be used for charitable deduction.The cost basis was 1/6 of market value. They said that the NUA was done 11 months ago. The account was seen as short term .Do you concur? If so I will wait till late January next year to do this.



Submitted by Gil Shifrin on Fri, 2019-12-13 15:46

Is there any update to my question? I need to make decision by next week.

Submitted by Alan - IRA critic on Fri, 2019-12-13 19:46

I have not been able to find any official guidance on this question. But since any increase in value since distribution will be taxed at ST rates, the intent is likely to define the holding period as beginning on the date of distribution, as that is how it would have to be listed on Form 8949. Therefore, I do not think that you could represent the holding period as being over 1 year  by counting the time you held the shares in your employer plan.  Safer to wait until the year passes from the date of distribution from the plan.

Submitted by Gil Shifrin on Fri, 2019-12-13 20:17

Thanks for your response. I could have saved more taxes this year than 2020; however I will take your advice and contribute to DAF next year. Gil

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