NUA
One NUA requirement – The distribution must include all assets from all accounts sponsored by and held through the same employer
Question: Does this rule include a Defined Benefit plan?
Thank you
One NUA requirement – The distribution must include all assets from all accounts sponsored by and held through the same employer
Question: Does this rule include a Defined Benefit plan?
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2020-11-16 14:31
No, it does not. The LSD requirement is “full distribution of all qualified plans of one kind”. DC plans such as 401k, 403b, and ESOPs are of one kind. A DB plan is not in that group, and neither are non qualified plans such as 457b plans. If a participant has a balance in a wide variety of plans, it is always a good idea to confirm up front which plans must be distributed (or rolled over) in order to qualify for NUA and have the 1099R coded as such.