NUA when Company Stock was held in Unitized Fund Structure
I am a long term employee of a publicly traded company hand have appreciated company stock within my 401k. I wanted to take advantage of NUA but found out from the custodian that the stock was held in a unitized fund structure. Do you think I can still take advantage of NUA based on this structure?
Permalink Submitted by Alan - IRA critic on Fri, 2022-04-29 15:02
You should ask the administrator to be sure, but the units can likely be converted to stock shares for distribution to a taxable brokerage account and you should receive a 1099R indicating the cost basis and NUA amounts. You will need to determine what your cost basis % is in order to know whether it is low enough to warrant use of NUA in the first place. Of course, you also have to execute a qualified lump sum distribution for NUA purposes as well, having no distributions to you between your triggering event (59.5, separation from service) and the year you request the LSD.