ESOP – Rollover
I have a 47-year-old who would like to rollover an ESOP plan to an IRA, value $129K. It’s not within side a 401k. Is this a regular Rollover?
Employee stock within the 401k plan. The client is 55 years old. Total value of the plan is $53K. Should I liquidate the stock before I roll it over?
Permalink Submitted by Alan - IRA critic on Mon, 2022-08-22 20:26
Have both these clients separated from service? While ESOPs are qualified plans and eligible for rollover of either shares or cash, a client might also consider NUA as an option to a rollover if the shares are highly appreciated. ESOP plans also very in their distribution options and when shares must be sold. Employer shares in a 401k are also eligible for NUA, and do not have some of the distribution limitations of some ESOP plans.