Net Unrealized Appreciation Strategy Allowed After An In-Service Withdrawal From Employer-Sponsored Retirement Plan?

Jeff owns highly appreciated employer stock in his employer-sponsored retirement plan. He plans on using the net unrealized appreciation strategy when he retires in 5 years at age 70. Jeff is currently 65 years old and would like to use the in-service withdrawal feature of his employer-sponsored retirement plan to move a portion of his employer-sponsored retirement plan to a Traditional IRA. Does the in-service withdrawal at age 65 eliminate his ability the use the net unrealized appreciation strategy when he retires at age 70?



It will eliminate use of NUA until a new triggering event occurs, being his separation from service. Upon separation he will again be eligible for a qualified lump sum distribution to utilize NUA providing that the share price is still high enough to warrant use of NUA at that time. 



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