NUA
401(k) participant accumulated shares of company stock – which recently became publicly traded. However, the shares were accumulated prior to the company becoming publicly traded
Participant has since retired and would now like to use NUA as his shares remain in the 401k.
I am looking for confirmation that he/she is eligible for NUA treatment even though the stock shares were purchased when the company was private – and now is public. I don’t see any issues. Looking for confirmation.
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2021-01-15 14:57
I think participant will still be eligible as long as the company accounting has tracked his cost basis to the present. He can confirm with the administrator while asking for a cost basis quote. Hopefully, participant has not taken any intervening distributions after his last triggering event, which could be either the date of retirement or date reaching 59.5. Any 404k dividends paid are not treated as intervening distributions.