NUA on Merger Stock specifically, the Oracle purchase of Cerner.
If a participant in a 401K plan is subject to a merger in example Oracle’s purchase of Cerner Corp and the participant has stock in their 401K, can they do a distribution of the stock at the tender price and be able to distribute it into their brokerage account and still take advantage of the net unrealized appreciation rules.
Permalink Submitted by Alan - IRA critic on Thu, 2022-01-27 00:42
It may depend on how the tender offer is structured. That said, if a 401k participant of the acquired company 401k tenders their shares, they would likely be sold within the 401k plan and that would erase the NUA option. Company shares must be distributed from the plan prior to sale to qualify for NUA. The participant should pose this question to the plan for a more specific indication.